Sept 11 (Reuters) – Global equity funds recorded significant outflows in the week through September 9, as a surge in oil prices amid the U.S.-Iran war heightened concerns about inflation and rising borrowing costs.
LSEG Lipper data showed that global equity funds recorded net outflows of $15.52 billion during the week, the largest since March 18, driven by net sales of $32.27 billion in U.S. equity funds.
European and Asian equity funds, however, recorded net inflows of $11.16 billion and $3.03 billion, respectively.
Brent crude hit a four-month high of $109.97 a barrel on Friday, after surpassing the key $100 threshold on Wednesday, fueling concerns that inflation would remain elevated and prompt major central banks to raise interest rates.
The U.S. producer price report released on Thursday, ahead of Friday’s consumer price data, indicated that inflation remained firm in August, strengthening expectations of a rate hike by the Federal Reserve next week.
Sectoral funds, meanwhile, attracted net inflows of $2.92 billion, led by net purchases of $1.89 billion in technology and $1.25 billion in financials.
Global bond funds attracted $8.95 billion, the smallest amount for a week since July 29.
Short-term bond funds attracted $6.65 billion, their second-largest weekly inflow in three months. Investors also bought $1.01 billion in loan participation funds and $743 million in government bond funds, while selling $2.37 billion in corporate bond funds.
Investors added money market funds of $10.72 billion in their second consecutive weekly purchase.
In commodity funds, gold and precious metals funds recorded net sales of $537 million after eight consecutive weeks of inflows. Energy, however, attracted $211 million.
In emerging markets, investors ended an eight-week streak of net purchases, posting net sales of $1.56 billion. Bond funds recorded a sixth consecutive weekly inflow of $537 million, data covering 28,984 funds showed.
(Reporting by Gaurav Dogra; Editing by Shilpi Majumdar)
