Investors funneled substantial capital into Asian equities and technology portfolios, offsetting heavy redemptions seen in U.S. markets. Although enthusiasm around artificial intelligence persisted, broader inflows slowed compared to the previous week as participants awaited results from major hyperscalers like Alphabet and Microsoft. Meanwhile, money market funds experienced a dramatic pullback of $38.5 billion after generating solid gains the prior week.
Key points
Investor preference rotated sharply toward international and technology shares while movi…: Investor preference rotated sharply toward international and technology shares while moving away from U.S. equities.
Significant capital fled cash instruments as money market funds shed $38.5 billion in net…: Significant capital fled cash instruments as money market funds shed $38.5 billion in net assets.
Fixed-income appetite cooled notably as short-term bond funds registered their first net…: Fixed-income appetite cooled notably as short-term bond funds registered their first net sales since April.
Sources checked by our analysis pipeline: 1
Oct 30 : Global equity funds saw substantial inflows in the week ended October 28, though at a slower pace, as a rebound in AI and chip stocks, led by South Korea’s SK Hynix after record quarterly profit, lifted demand for technology and Asian funds.
Investors bought a net $10.19 billion in global equity funds for a sixth consecutive week of net purchases, though inflows eased from $25.06 billion the previous week, according to LSEG Lipper data.
There was, however, some caution in markets over the AI trade ahead of earnings reports from AI hyperscalers Alphabet, Microsoft and Amazon.
Asian equity funds led regional inflows, attracting $9.9 billion in net purchases, after $11.58 billion the previous week. Investors added $4.54 billion to European funds but withdrew a net $6.65 billion from US equity funds.
Among sectoral funds, investors allocated $5.5 billion to the technology sector, up from $5.07 billion the previous week. Industrial sector funds also drew $408 million, while utilities saw $928 million in outflows.
Weekly net inflows into global bond funds cooled to a six-week low of $2.72…
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