(Reuters) – Global equity funds attracted large inflows in the week through March 26 when equity markets initially rebounded on optimism that President Donald Trump’s administration would apply tariffs more selectively rather than impose broad trade restrictions.
Investors purchased global equity funds of a net $35.43 billion during the week following about $29.49 billion worth of net sales in the prior week, data from LSEG Lipper showed.
The MSCI World Index recovered as much as 4.26% after hitting a six-month low of 819.94 on March 13, reaching a two-and-a-half-week high of 854.88 on Tuesday.
However, global equities turned slightly lower later in the week after U.S. President Donald Trump announced a 25% import tax on foreign-made vehicles and auto parts on Wednesday, rekindling investor concerns over a potential full-scale trade war.
U.S. equity funds recorded net weekly inflows of $22.44 billion, reversing sharply from net outflows of $33.53 billion the previous week.
European and Asian equity funds also attracted strong investor interest, with net inflows of $6.84 billion and $4.36 billion, respectively.
Technology led the sectors with $1.32 billion in inflows, followed by financials and industrials at $802 million and $754 million, respectively.
Global bond funds registered net purchases of $1.37 billion, rebounding from net sales of $255 million in the prior week.
Euro-denominated bond funds recorded their fourth consecutive week of inflows, totaling $1.28 billion, while short-term debt funds attracted $791 million.
Meanwhile, money market funds saw net outflows of $48.73 billion, extending losses for a third straight week.
Commodity funds focused on gold and precious metals drew $3.03 billion – their highest weekly inflow in four weeks – amid heightened demand.
Wei Li, head of multi-asset investments at BNP Paribas Asset Management, attributed the surge in gold ETF inflows to increased demand from institutional investors.
“Institutional investors often take a strategic approach to asset allocation, using gold to hedge against market volatility and economic downturns,” Li said.
Data from 29,634 emerging market funds showed equity outflows easing to a three-week low of $163 million, while bond funds posted $448 million in net outflows, marking the second consecutive week of redemptions.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Andrew Heavens)
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