(Reuters) – Global equity funds rallied for the week ended November 2 as investors hoped the US Federal Reserve would consider slowing the pace of its rate hikes before making its policy decision.
According to data from Refinitiv Lipper, investors net bought $13.76 billion in global equity funds, their largest weekly net purchase since March 23.
Graphic: Fund Flows: Global Equities, Bonds and Money Market – https://fingfx.thomsonreuters.com/gfx/mkt/klvygeoydvg/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
The US, European, and Asian equity funds all received inflows of $10.19 billion, $2.42 billion, and $830 million, respectively.
By sector, investors accumulated $717 million, $522 million and $458 million for healthcare, technology and consumer staples respectively.
However, sentiment was slightly dampened after the US Federal Reserve hiked interest rates by 75 basis points and said the interest rate peak was likely to be higher than previously expected.
Chart: Fund Flows: Global Equity Sector Funds – https://fingfx.thomsonreuters.com/gfx/mkt/dwpkdgnbzvm/Fund%20flows-%20Global%20equity%20sector%20funds.jpg
Meanwhile, global bond funds generated $655 million worth of inflows after experiencing 10 straight weeks of sell-offs.
High-yield bond funds posted $4.35 billion worth of purchases, the largest weekly inflow in two months, but short- and intermediate-dated bond funds posted their 11th straight week of net sales.
Investors sold $1.22 billion in government bond funds after 10 consecutive purchases.
Chart: Global bond fund flows for the week ended November 2 – https://fingfx.thomsonreuters.com/gfx/mkt/xmvjkgxdjpr/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Nov.%202 .jpg
Money market funds had a fifth straight weekly inflow of $66.82 billion, the data showed.
Emerging market (EM) stocks gained $1.5 billion after two weeks of outflows, although bonds fell out of favor for an eleventh consecutive week with outflows worth $2.45 billion, data for 24,754 EM funds showed.
Graphic: Fund Flows: EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/zjvqjqgznpx/Fund%20flows-%20EM%20equities%20and%20bonds.jpg
Among commodity funds, precious metals funds posted outflows of $1.01 billion for the third week, but energy funds posted a second weekly inflow worth $73 million.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shailesh Kuber)