Investors Flee Global Equity Funds Amid Record Market Highs

For a second consecutive week, global equity funds experienced outflows as investors took profits near record market highs, with $20.87 billion divested. The outflux was driven by cautiousness ahead of U.S. economic reports. Meanwhile, technology saw significant withdrawals while industrial sectors gained inflows, amid cooling demand for debt funds.

In a clear sign of investor caution, global equity funds suffered their second consecutive week of outflows, totaling $20.87 billion, as traders booked profits near record market highs. The mass withdrawal was largely attributed to looming U.S. economic output and inflation reports.

The MSCI World Index continued its upward momentum, reaching a new peak for the fourth consecutive day amid optimism sparked by a potential ceasefire between Israel and Iran. However, U.S. equity funds were not immune to the trend, experiencing their largest three-month weekly withdrawal at $20.48 billion, with European funds also registering outflows.

In spite of this, Asian funds bucked the trend with inflows of $857 million. Meanwhile, the technology sector bore the brunt of investor retreat, while the industrial sector continued to attract funds, marking the 11th week of consecutive inflows.