Surging Inflows: A Boost for Global Equity Funds Amid Easing Trade Tensions

Global equity funds have witnessed a remarkable surge, attracting the largest weekly inflow in three weeks, as signs of easing trade tensions between the United States and China, coupled with robust earnings from leading U.S. companies, boosted investor confidence. According to LSEG Lipper data, investors poured a net $11.03 billion into global equity funds during the last week, marking a peak since October 1.

The potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping next week has further fueled hopes of progress on a trade deal, renewing appetite for risk assets. U.S. equity funds took in $9.65 billion after experiencing two consecutive weeks of outflows, while Asian funds enjoyed a net $2.81 billion influx. Conversely, European funds faced a net outflow of about $2.25 billion.

Sectoral funds observed notable interest in the technology sector, which attracted $2.92 billion, the highest weekly amount since early October. Investors also funneled $886 million into gold and precious metals funds, while industrial sector funds saw an $819 million investment. Bond funds continued their strong run, with global bond funds receiving $17.33 billion, extending net purchases into a 27th week.