July 3 (Reuters) – Inflows into global equity funds rose in the week to July 1, as investors took advantage of a pullback in major markets to add technology stocks, betting that the sector’s earnings momentum would be intact.
A net $10.44 billion poured into these funds, about a quarter higher than the prior week’s $8.4 billion, LSEG Lipper data showed.
The MSCI World Index fell 2.07% last week amid concentration risks and concerns over hyperscalers’ spending plans, though analysts remained upbeat on the broader technology sector’s earnings outlook.
“Our tech analysts see no reason for the sector’s earnings momentum to slow or reverse over the near-term with the upcoming 2Q earnings season expected to be supportive,” said William Bratton, head of cash equity research for APAC at BNP Paribas, in a note last week.
“All three core components of the tech sector – semis, hardware, and components – are still seeing robust uplifts to F12M earnings”.
Asian equity funds posted a seven-week-high inflow of $7 billion, while U.S. and European funds attracted $1.03 billion and $337 million, respectively.
Technology sector funds attracted $8.9 billion as demand rebounded after net sales of $17.83 billion the previous week. Financials and healthcare funds also drew inflows of $2.27 billion and $1.52 billion, respectively.
Global bond funds remained in demand for a 13th straight week, drawing $14.47 billion.
High-yield bond funds received $3.61 billion, their largest weekly inflow since June 2025, while euro-denominated and short-term bond funds attracted $2.72 billion and $2.31 billion.
Money market funds saw $32.55 billion in inflows, reversing the previous week’s $39.36 billion in net sales.
Among commodities, gold and other precious metal funds recorded a seventh consecutive weekly outflow, totaling $1.85 billion, while energy funds saw net sales of $116 million.
In emerging markets, equity funds faced selling pressure for a 10th straight week, with net outflows of $5.14 billion. Investors also withdrew $622 million from bond funds, data covering 28,900 funds showed.
(Reporting by Gaurav Dogra, with additional reporting by Patturaja Murugaboopathy in Bengaluru; Editing by Harikrishnan Nair)