Cooling Global Equity Fund Inflows Amid Market Jitters

Global equity fund inflows dropped significantly as investors worried about technology valuation and weakening U.S. labor conditions. Inflows to equity funds fell to $4.11 billion from $22.27 billion the previous week. Meanwhile, Asian markets led inflows, while European funds faced outflows, and bond funds continued to see consistent demand.

Global equity fund inflows have experienced a substantial decrease as investors express concerns over high technology valuations and signs of U.S. labor market softening.

Recent data from LSEG Lipper revealed that net purchases of equity funds plummeted to $4.11 billion from $22.27 billion in the prior week, reflecting a notable shift in investor sentiment.

This downturn was further compounded by major technology stocks dropping and SoftBank Group's decision to sell $5.83 billion of Nvidia shares, exacerbating market caution.

While Asian equity funds enjoyed continued inflows, European funds registered significant outflows. Bond funds, however, remained robust as they attracted significant net inflows for the 30th consecutive week, aided significantly by short-term bond funds.

The renewed demand for precious metal commodities reversed two weeks of outflows, while emerging market equities continued to see steady inflows, contrasting with ongoing outflows in emerging market bond funds.

(With inputs from agencies.)