Dec 27 Reuters Global equity funds witnessed sharp inflows in the week through Dec. 25, rebounding from significant net sales the previous week, buoyed by a benign U.S. inflation report and relief that Washington had averted a government shutdown, which restored investor confidence in risk assets.

According to LSEG data, investors pumped a hefty 34.38 billion into global equity funds, the largest amount in six weeks, following a net 36.84 billion worth of sales in the week before.

A report from the Commerce Department last Friday showed the PCE price index rose 0.1 in November, cooler than analysts expected, restoring some hope for further Federal Reserve rate cuts next year.

U.S. equity funds attracted 20.56 billion, marking their seventh inflow in eight weeks. Meanwhile, European and Asian funds also saw substantial inflows, capturing 5.11 billion and 2.84 billion, respectively.

Global sectoral equity funds experienced net outflows for the third consecutive week, totaling 2.48 billion. Specifically, investors pulled out 810 million from healthcare funds, 639 million from consumer discretionary funds, and 480 million from metals and mining sector funds.

Global bond funds recorded net sales of 1.47 billion for a second consecutive week, following a streak of 51 successive weekly inflows that ended on Dec. 11.

Global high yield bond funds saw their largest outflow in eight months, with net sales amounting to 2.99 billion during the week. Conversely, investors…