As of April 21, investors invested $16.4 billion in global bond funds and $14.9 billion in money market funds, according to Lipper, a fund analysis company of refinitiv, as concerns about the world’s new top cases have prompted investors to turn to relatively safe assets.
Data show that the amount of money flowing into global bond funds increased by about 2% compared with the previous week, while money market funds had an outflow of $50 billion in the week before the inflow.
Global equity funds had inflows of US $10.8 billion, down about 33% from the previous week.
The inflow of equity funds slowed down, and investors began to question the high valuation of the stock market at a time when the number of new cases surged and the impact on the global economy intensified.
However, the inflows of equity funds are concentrated in Europe, absorbing US $8.2 billion, Asian Stock Funds US $1.5 billion and US Stock Funds US $800 million.
European stock markets hit a record high this week as the recovery of the Soviet Union from the blockade is expected to boost first quarter profit growth.
Data show that, impacted by the increasing number of new crown cases, India’s equity funds outflow of 287 million US dollars that week, the largest outflow in three months.
In terms of commodities, the outflow of funds from safer precious metals funds was the lowest in 10 weeks, thanks to the decline in bond yields and the depreciation of the US dollar.
Concerns about economic recovery affected energy funds, which had the largest outflow of $195.5 million in six weeks.
Emerging market equity funds recorded their first capital outflow in 30 weeks, while emerging market bond funds saw an inflow of $714 million, the lowest in three weeks.