Global Equity Funds Face Downturn Amidst Trade Tensions

Investment in global equity funds fell sharply due to U.S. President Trump’s trade dispute threats with Europe. Despite significant purchases in European and Asian funds, U.S. equity funds saw major outflows. Investor focus shifted towards bond funds and precious metals amid a volatile global market outlook.

Investment in global equity funds experienced a notable downturn, as U.S. President Donald Trump's threats to reignite trade tensions with Europe over Greenland created market uncertainties. According to LSEG data, a net $9.19 billion was invested in global equity funds, a steep drop from the previous week's $45.57 billion.

Trump eventually eased concerns by retracting tariff threats against eight European nations and dismissing prospects of forcibly seizing Greenland. However, the U.S. equity funds saw a $5.26 billion outflow, reversing part of the previous week's $28.17 billion inflow. Meanwhile, European and Asian equity funds attracted $10.22 billion and $3.89 billion respectively.

Investors also favored bond funds, pouring a net $12.52 billion as they maintained a diversified approach amidst market volatility. The financials and metals and mining sectors recorded notable inflows, while gold and precious metals funds saw their 10th weekly inflow in 11 weeks, highlighting a resilient interest in safe-haven assets.