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US equity funds see outflows on trade policy worries, Europe drew inflows ahead of ECB rate cut

US equity funds see outflows on trade policy worries, Europe drew inflows ahead of ECB rate cut

US equity funds see outflows on trade policy worries, Europe drew inflows ahead of ECB rate cut 150 150 admin

(Reuters) -U.S. equity funds saw outflows for a third straight week through June 4, as concerns lingered over uncertainty surrounding U.S. trade policies, while investors remained cautious ahead of a key jobs report due Friday.

At the same time, European equity funds witnessed firm demand for an eighth successive week, influenced by a weaker inflation print and expectations of a policy rate cut by the European Central Bank, which it delivered on Thursday.

According to LSEG Lipper data, investors withdrew a net $7.42 billion from U.S. equity funds during the week while scooping up approximately $2.72 billion worth of regional funds in Europe. Asian funds also witnessed a net $1.84 billion worth of purchases during the week.

Investors, meanwhile, bought $667 million worth of sectoral funds, extending net purchases into a second successive week.

The tech and industrial sectors received a significant $909 million and $878 million respectively in inflows, while the financials and healthcare sectors lost nearly $800 million each in outflows.

Global bond funds witnessed a net $16.17 billion worth of accumulations for a seventh successive weekly inflow.

Investors pumped a combined $4.66 billion into dollar denominated short- and medium-term bond funds, logging their biggest weekly net purchase since April 2024. High yield bond funds also saw a massive $2.93 billion worth of inflows.

Simultaneously, weekly inflows in money market funds surged to a five-month-high of $108.5 billion.

Gold and precious metals commodity funds were also popular as investors poured $1.69 billion-the highest in seven weeks- into these funds.

Among emerging markets, bond funds witnessed a sixth weekly net purchase, amounting $1.99 billion, while equity funds experienced about $191 million worth of net additions, data covering 29,720 funds showed.

(Reporting by Gaurav Dogra in Bengaluru; Editing by Toby Chopra)

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