A trader works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 19, 2021. REUTERS/Andrew Kelly/File photo

Sept 13 (Reuters) – Global equity funds lured fewer inflows in the week to Sept. 8 as investors turned cautious due to uncertainty over the pace of economic recovery and shied away from riskier assets.

Investors purchased a net $8.54 billion in global equity funds in the week, a 54% drop compared with the net buying in the previous week.

Concerns over the spread of the delta variant of COVID-19 and its impact on the economic recovery weighed on investor sentiment last week.

Fund flows into global equities bonds and money markets

Also, markets were assessing data showing the U.S. economy created the fewest jobs in seven months in August and wondering how the U.S. central bank will respond.

European equity funds attracted an inflow of 9.17 billion, while U.S. and Asian equity funds had outflows.

Within sector funds, inflows into healthcare and tech funds dropped sharply, while financial and industrial sector funds faced outflows.

Global fund flows into equity sectors

Meanwhile, global money market funds secured a net $22.17 billion, after seeing two weeks of outflows, underscoring the risk-off sentiment during the week.

Global bond funds saw inflows for a seventh straight week, obtaining $11.73 billion.

Global inflation-protected bond funds lured a net $1.4 billion, the largest in five weeks.

Global bond funds’ flows in the week ended Sep 8

Among commodity funds, precious metal funds faced outflows worth $116 million after seeing inflows in the previous week, as gold prices dipped to a two-week low last week.

Energy funds also witnessed outflows for a fourth successive week.

An analysis of 23,907 emerging market funds showed bond funds attracted $1.21 billion and equity funds received a net $973 million, each marking a second weekly inflow.

Fund flows into EM equities and bonds

Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

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