Easing US inflation bets on rate cuts fuel risk appetite; the US leads inflows, while bonds and emerging markets also attract money.
Global equity funds recorded their strongest weekly inflows in more than three months in the week ending January 14, as investors piled back into stocks amid renewed optimism over interest rate cuts and a resilient economic outlook.
Data from LSEG Lipper showed that global equity funds received net inflows of $45.59 billion, the largest weekly intake since early October, when investors poured in $49.13 billion.
The surge in buying came as the MSCI World index hit fresh record highs this week, building on a stellar 20.6 per cent rally in 2025 and gaining around 2.4 per cent so far this year.
Market sentiment improved after a US Labour Department report showed only a modest rise in core inflation in December, strengthening expectations that the Federal Reserve could begin cutting interest rates later in 2026.
Regional flows:
US equity funds attracted the bulk of the money, drawing $28.18 billion, their biggest weekly haul in two and a half months. European equities saw $10.22 billion in inflows. Asian equity funds received $3.89 billion.
Sector winners:
Technology, industrials, and metals & mining were the most favoured sectors, with weekly inflows of $2.69 billion, $2.61 billion, and $1.88 billion, respectively.
Global bond funds saw steady demand with $19.03 billion in net inflows, similar to the previous week. Short-term bonds and euro-denominated funds led purchases, while high-yield and loan participation funds each attracted about $1 billion.
In contrast, money market funds experienced $67.15 billion in net outflows, as investors rotated out of cash after parking nearly $250 billion in the previous two weeks.
Gold and precious metals funds logged their ninth weekly inflow in 10 weeks, drawing $1.81 billion.
Emerging market assets were also in favour, with investors adding $5.73 billion to EM equity funds—the biggest weekly inflow since October 2024—and $2.09 billion to EM bond funds.
Overall, the data signals a renewed appetite for risk as investors grow more confident that inflation is cooling and central banks may begin easing monetary policy later this year.
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