Equity Funds Extend Inflow Streak Amid Earnings Optimism

Global equity funds have attracted net inflows for 12 consecutive weeks, fueled by optimism over strong earnings and reduced rate hike bets. According to LSEG Lipper data, investors purchased a net $18.62 billion in global equity funds through August 12, surpassing the previous week's $17.27 billion. This marks the longest streak of inflows since records began.

The MSCI All-Country World Equity Index rose 2.85% last week, its best performance since April 17, driven by strong earnings from AI-related companies such as Caterpillar and Palantir. Weaker-than-expected US payroll growth and easing inflation have also tempered expectations of a Federal Reserve rate hike.

The European equity funds saw their largest weekly net inflow since July 8, with $13.52 billion invested. US and Asian equity funds also attracted net inflows of $2.58 billion and $4.13 billion, respectively. However, investors withdrew about $1.7 billion from technology-sector funds after a six-week run of net purchases.