Global Equity Exodus: Oil Fears Drive Largest Outflows Since December

Global equity funds experienced significant outflows, with $7.05 billion withdrawn amid growing concerns over oil supply disruptions due to U.S.-Israel-Iran tensions. Oil prices soared above $100 a barrel, causing market volatility. Investors shifted funds to safer assets, impacting U.S. and European equities while increasing investments in Asia and industrial sectors.

In a dramatic shift, global equity funds saw their largest weekly outflows since December, amounting to $7.05 billion. The turmoil arose from disrupted oil supplies amid tensions involving the U.S., Israel, and Iran, threatening global economic stability.

Brent crude prices surged past $100 a barrel, marking the largest oil supply disruption in history. This spooked markets, with the CBOE Volatility Index reaching a high of 28.15, reflecting peak uncertainty in investor sentiment.

In response, investors redirected funds away from U.S. and European equities, affecting both financial and healthcare sectors. In contrast, Asia and industrial sector funds attracted influxes. Meanwhile, bond investments slowed, and emerging markets faced selling pressure following a period of sustained gains.

(With inputs from agencies.)