Staff of Reuters Read for 2 minutes Reuters, July 9 – Investors rushed for safety amid fears that the spreading Delta coronavirus variant could cause the economic recovery to stall, attracting the largest weekly inflow in more than three months. Global bond funds received $19 billion in inflows in the week ending July 7, according to Refinitiv Lipper data, the highest since the week ended April 7. This week, 10-year Treasury yields fell to a four-and-a-half-month low as investors worried about the economy’s fragility and the threat of high inflation. Global equity funds, on the other hand, received a net inflow of $1.9 billion, the smallest in a month. U.S. equity funds saw a $5.2 billion outflow, while European and Asian equity funds saw $6 billion and $0.3 billion inflows, respectively. Concerns about China’s crackdown on local tech companies led to outflows in funds focused on Chinese equities, according to the data. Healthcare and consumer cyclical funds received $550 million and $405 million in equity sector funds, respectively, while financial sector funds saw their fourth consecutive week of outflows. Investors, on the other hand, poured $30 billion into global money market funds, the most in six weeks, highlighting the risk-off mood in the markets this week. Energy funds have had withdrawals for the sixth week in a row, while precious metal funds have seen their largest inflow in six weeks, mainly to a jump in gold prices. Bond funds received a net $838 million inflow, the largest in four weeks, according to an analysis of 23,668 emerging-market funds, while equity funds saw outflows worth a net $40 million for the third week in a row. Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru contributed reporting, and Edmund Blair edited the piece./n
Read More
