GRAPHIC-Global equity funds see biggest weekly outflows since March 2020 -Lipper

Dec 23 (Reuters)Global equity funds have recorded their biggest weekly outflows since March 2020, hit by recession fears as central banks vow to keep interest rates higher to tame inflation.

Data from Refinitiv Lipper showed a net withdrawal of $33.6 billion in the week to Dec. 21.

The U.S. Federal Reserve and the European Central Bank raised interest rates in their final policy decisions of the year last week, with the Fed Chair saying the central bank would deliver more hikes in 2023 to combat inflationary pressures.

The Fed has delivered 400 basis points (bps) of rate hikes this year, and the European Central Bank a record 250 bps.

The MSCI All Country stock index .MIWD00000PUS has fallen about 20% this year, more than reversing 2021’s 17% gain.

Global bond funds also saw a net weekly outflow, of $14.1 billion, the biggest in more than two months. Money market funds recorded net sales of $41 billion.

Among commodities, precious metal funds attracted a net $362 million, compared with an outflow of $220 million in the previous week, while investors withdrew a net $523 million from energy funds, the most this year.

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According to data available for 24,687 emerging market (EM) funds, a net $664 million flowed out of bond funds, while a meagre $195 million was added to equity funds.

Global sector flows

EM flows

Bond flows

Global fund flows

(Reporting By Patturaja Murugaboopathy; Editing by Kirsten Donovan)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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