GLOBAL INVESTORS SPLASH CASH INTO EQUITY FUNDS
Walk 1 (Reuters) - Hold onto your hats, It's raining money in the global equity market, and investors are diving in headfirst, fueled by a stock market frenzy and a newfound love for all things tech - especially after Nvidia dropped a bombshell with its stellar earnings forecast and the buzz around artificial intelligence hit fever pitch.
According to LSEG data, investors pumped a whopping $6.98 billion into global equity funds during the week, a complete turnaround from the previous week's net withdrawals of around $2.93 billion.
Last week, the MSCI World Stock Index hit a dizzying new high of 763.35, riding on the coattails of Nvidia's bullish outlook, which briefly catapulted the company's market cap to a mind-boggling $2 trillion. That's trillion, with a "T" - enough to make even Elon Musk raise an eyebrow.
The inflow party was in full swing across regions, with Asian funds leading the charge, raking in a cool $3.56 billion in net purchases - the biggest weekly buying spree in a month. Not to be outdone, European and U.S. funds also got their fair share of the action, attracting approximately $2.52 billion and $196 million, respectively.
Investors just can't get enough of the tech sector, pouring in a jaw-dropping $1.35 billion for the seventh week in a row. It seems like tech is the new black. And it's not just tech hogging the limelight - sectors like industrials and metals and mining also got a slice of the investment, with net purchases totaling $245 million and $219 million, respectively. Who knew mining could be so glamorous?
Over in the bond market, global bond funds continued to be the apple of investors' eyes for the tenth consecutive week, reeling in a staggering $9.78 billion.
Meanwhile, currency market funds finally caught a break, seeing their first weekly net inflows in ages, with a whopping $27.17 billion pouring in. Looks like someone finally remembered that currencies exist, huh?
But it's not all sunshine and rainbows for every asset class. Precious metal funds are feeling a bit neglected, with outflows for the tenth week in a row, totaling a hefty $767 million. And spare a thought for energy funds, which saw net selling to the tune of about $107 million.
In emerging markets, equity funds are having a moment, attracting a cool $506 million - the most in a week since December 27, 2023. But it's not all good news, as bond funds continue to bleed, with net outflows totaling $328 million for the third week running.
A wild week in the world of global investing, where the only thing more unpredictable than the markets themselves is investor sentiment.