Global Equity Funds Surge Amid Rate Cut Speculation

Global equity funds saw substantial inflows, netting $12.9 billion, driven by expectations of a Federal Reserve rate cut. European funds led the way with $6.4 billion, while sectoral funds attracted $2.13 billion. Meanwhile, money market funds experienced significant outflows, and gold funds gained for the fifth consecutive week.

Global equity funds attracted significant investor interest in the week leading up to December 10, with net proceeds reaching $12.9 billion. This marks the highest inflows since early November, as investors anticipated a potential rate cut from the Federal Reserve.

Despite the Fed cutting rates by a quarter percentage point, the central bank signaled a pause on future reductions, citing lingering inflation concerns and an uncertain economic outlook. European equity funds recorded inflows of $6.4 billion, leading the regional surge.

Sectoral funds also saw notable gains, with a $2.13 billion net addition. Money market funds, however, faced substantial outflows totaling $12.99 billion. Meanwhile, precious metals commodity funds enjoyed continued demand, with inflows continuing into a fifth consecutive week.

(With inputs from agencies.)