Global Equity Funds Surge Amid Economic Optimism

Global equity funds experienced a significant influx, the largest in 15 weeks, as investors anticipated potential interest rate cuts. The MSCI World index reached new heights, bolstered by positive U.S. inflation data, prompting substantial investments across various regions and sectors.

Global equity funds have recorded their most substantial weekly net purchase in 15 weeks, driven by investor optimism in the face of easing U.S. inflation pressures and anticipations of potential interest rate cuts. This surge in investments pushed global stocks close to record highs, highlighting a continued momentum from the previous year.

The MSCI World Index, which climbed 20.6% last year, achieved fresh records in the latest week, buoyed by a U.S. Labor Department report indicating a moderate rise in core CPI. This data has solidified expectations that the Federal Reserve may reduce interest rates later in the year. U.S. equity funds attracted $28.18 billion, marking the highest weekly influx in over two months, with European and Asian funds also seeing significant investments.

The technology, industrial, and metals and mining sectors witnessed notable investment surges, reflecting investor confidence in these industries. Meanwhile, global bond funds received consistent inflows, and money market funds experienced notable outflows as investors adjusted their portfolios. Furthermore, gold and precious metals commodity funds saw consistent growth, reflecting a strong demand for diverse investment avenues.

(With inputs from agencies.)