Seventh straight week of global outflows from bond and equity funds

Oct 7 (Reuters) – Global bond and equity funds witnessed a seventh consecutive week of withdrawals in the week ending Oct. 5. This was as rising oil prices and the prospect of continued interest rate hikes by the Federal Reserve weighed on sentiment.

Investors dumped a net worth of $16.33 billion in global bond funds and about $8 billion in equity funds, according to Refinitiv Lipper data.

During the week reported, Personal Consumption Expenditure (PCE) price index data showed a 0.3% gain in August after falling 0.1% in July.read more

Adding to investor concerns about inflation, the Organization of the Petroleum Exporting Countries and its allies agreed earlier this week to sharply cut oil production, curbing supply in an already tight market.read more

Investors sold $13.04 billion and $910 million to European and US bond funds, respectively, while Asian funds earned just $70 million.

Short- and medium-term bond funds posted $7.5 billion in outflows after netting $8.57 billion last week, data showed, while investors reported $5.23 billion in treasury funds. purchased.

Among equity funds, health care and financial sector funds witnessed $804 million and $398 million in disposals, while utilities collected $326 million net.

Meanwhile, money market funds posted a net long position of $63.01 billion, the biggest weekly inflow since early July.

Commodity funds data showed precious metals funds losing $206 million in 15 consecutive weeks of net selling, while energy funds showed a modest outflow of $63 million.

An analysis of 24,645 emerging market funds found that equity funds received $1.18 billion in their first weekly inflows since July 13, while fixed income funds posted weekly outflows for the seventh consecutive week, with $3.93 billion. shown to be equivalent to US dollars.

Reported by Gaurav Dogra and Patturaja Murugaboopathy from Bangalore.Edited by Toby Chopra

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