Global Equity Surge: A Multi-Billion Dollar Influx

In the week leading up to October 29, global equity funds saw an impressive influx of $10.58 billion as investors anticipated an interest rate cut by the U.S. Federal Reserve and a potential trade agreement between U.S. President Donald Trump and Chinese President Xi Jinping.

The Federal Reserve indeed reduced interest rates by 25 basis points on Wednesday, citing easing inflation, though Fed Chair Jerome Powell cautioned against another reduction in December due to insufficient government data. Concurrently, Trump reached a tentative deal with China to lower tariffs in return for commitments on fentanyl trade and U.S. soybean purchases.

Asia saw the most substantial inflow since January 2024, with Japan benefitting significantly. While technological and utility sectors attracted investments, commodities like gold witnessed outflows. Bond funds maintained a steady influx, marking a 28-week streak, although money market funds experienced a dip from prior levels.