July 29 Reuters Global equity funds witnessed weekly outflows for a fifth straight week in the week to July 27 on caution ahead of the U.S. Federal Reserve39;s policy meeting and on lingering fears over a global recession.
According to Refinitiv Lipper, global equity funds booked net selling of 2.73 billion, although weekly outflows eased to the lowest in five weeks.
The Fed raised U.S. interest rates by 75 basis points on Wednesday, in a quest to cool the sharpest inflation since the 1980s and signalled ongoing increases in borrowing costs were still ahead despite evidence of a slowing economy.
Also a cut in Russian gas flows to Europe and European Union leaders39; agreement on an emergency plan to curb demand, raised concerns.
European and Asian equity funds posted outflows of 2.58 billion and 0.55 billion respectively, while the U.S. equity funds drew a net 0.63 million in inflows.
Investors broadly withdrew out of sectoral funds with real estate, industrials, financials and tech recording outflows of 672 million, 593 million, 538 million and 267 million, respectively.
Meanwhile, safer money market funds obtained 3.52 billion in net buying after 3.05 billion worth of outflows in the week before.
Global bond funds suffered withdrawals worth 2.28 billion, in a third subsequent week of net selling.
Selling in short term funds surged to a threeweek high of 4.43 billion, while government bond funds recorded outflows of 567 million after five weeks of net buying in a…