Global Equities Soar as Earnings Optimism Trumps Rate Hike Fears

Global equity funds continued their winning streak for the 12th consecutive week through August 12, attracting net inflows of $18.62 billion. This surge in investor confidence is largely attributed to optimism over a strong earnings season and data showing weaker-than-expected U.S. payroll growth and easing inflation.

The MSCI All-Country World Equity Index hit a record high of 1,163.05 on Wednesday, rising 2.85% last week, its best weekly performance since April 17. This significant increase was bolstered by strong earnings from AI-related companies such as Caterpillar and Palantir.

Regional funds also saw substantial inflows, with European equity funds attracting $13.52 billion, their largest weekly net inflow since July 8. U.S. and Asian equity funds recorded inflows of $2.58 billion and $4.13 billion, respectively.