Dec 22 Reuters Global equity funds saw significant withdrawals in the week up to Dec. 20 as investor enthusiasm over potential rate cuts waned and profittaking set in ahead of the yearend holidays.

The markets have experienced a sharp rally since late October. Investors reassessed positions during the week and sold 12.5 billion worth of equity funds, marking their largest weekly net selling since June 21.

The MSCI AllWorld index dropped 0.9 on Wednesday, its steepest decline since Oct. 16, facing resistance near its March 2022 high of 724.49. Despite the recent pullback, the index has climbed nearly 15 since reaching a sevenmonth low on Oct. 27.

Investors pulled a net 10.45 billion out of U.S. equity funds, the biggest amount since Sept. 27. European and Asian funds also saw withdrawals worth 1.24 billion and 279 million, respectively.

The tech sector had 1.16 billion of outflows compared to net purchases of about 1.94 billion in the prior week. Financials and healthcare also recorded 838 million and 618 million worth of outflows, respectively.

Global bond funds lost 5.37 billion in outflows as net selling extended into a second successive week.

Global corporate bond funds broke an eightweek buying streak, with investors offloading funds worth a net 4.03 billion during the week. However, government and highyield funds received 1.67 billion and 882 million, respectively, in inflows.

Meanwhile, global money market funds experienced 35.61 billion worth of net selling,…