Global equity funds attracted $10.19 billion for a sixth straight week, but inflows fell sharply as investors weighed the AI-driven chip rally against caution ahead of major technology earnings.
Global equity funds drew in money for a sixth consecutive week in the seven days to 28 October, although the pace of buying slowed sharply as investors weighed fresh enthusiasm for artificial intelligence against lingering caution ahead of major earnings reports, Reuters reported. LSEG Lipper data showed net inflows of $10.19 billion, down from $25.06 billion the previous week.
The strongest demand came from Asian equity funds, which took in $9.9 billion, as a rebound in AI-related and chip stocks helped support sentiment across the region. Reuters said South Korea’s SK hynix was a key driver of that move after it reported record quarterly profit, underscoring how closely investor appetite remains tied to the chip cycle and the outlook for AI infrastructure. European equity funds also attracted $4.54 billion, while US equity funds recorded net withdrawals of $6.65 billion.
The technology sector remained the clear favourite among fund buyers, with $5.5 billion of net inflows, up from $5.07 billion the previous week. Industrial funds also drew fresh money, while utilities saw outflows, suggesting investors were still favouring cyclical and growth-linked areas over more defensive parts of the market. Reuters noted, however, that some investors were becoming more restrained ahead of earnings from Alphabet, Microsoft and Amazon, three of the biggest names in the AI trade.
The shift in risk appetite was also visible in fixed income and cash-like assets. Global bond funds attracted $2.72 billion, their weakest showing in six weeks, while short-term bond funds suffered $2.67 billion of outflows, the first weekly net sales since mid-April. Government bond funds and corporate bond funds still pulled in money, but money market funds saw steep net outflows of $38.5 billion after a strong inflow the previous week.
Elsewhere, precious metals funds lost $1.51 billion, marking a second week of net sales in the past seven, while energy funds attracted $177 million. Emerging-market equity funds remained in favour for a third straight week, with $2.2 billion of inflows, but emerging-market bond funds recorded their largest weekly outflow since 30 September, at $1.85 billion.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
