The final week of May ended with US lawmakers voting to lift the country’s debt ceiling, markets assigning a one-in-three chance that the Federal Reserve will raise interest rates in mid-June and the price of oil testing 18-month lows. Against this backdrop, flows into all EPFR-tracked Equity Funds hit a 17-week high on the back of record-setting inflows to Technology Sector Funds and China Equity Funds absorbed nearly $5 billion.
Debt ceiling no obstacle for US Bond Funds
Amidst increasingly stark warnings of economic chaos if the current standoff over the US federal debt ceiling is not resolved, EPFR-tracked US Bond Funds pulled in another $8.1 billion going into the final week of May as they recorded their 21st consecutive inflow.
The best defense is a good Chinese economy
Worries about the impact a two-pronged credit squeeze, driven by quantitative tightening and the pressure on regional bank loan books, will have on the US economy kept investors in a defensive frame of mind during the week ending May 17.
Banking on more pain ahead
A recession in the second half of the year, triggered by the impact of current interest rates on the real estate sector and the banks that lend to it, is a fearful scenario for investors. This was reflected in the flows for EPFR-tracked Sector Funds during the week ending May 10, with a combined $3.8 billion redeemed from Financial, Real Estate, Energy and Commodities Sector Funds.
Weekly fund flows highlights – 8th May 2023
How did markets react to the interest rate hikes from both the US Federal Reserve and the European Central Bank? In a week where nonfarm payrolls in America reported a job increase way above the initial expectations, we use EPFR’s Fund Flows and Allocations data to deep dive into the latest investor sentiment trends.
Weekly fund flows highlights – 1st May 2023
Market news this week are dominated by rumors of another possible interest rate rise from both the US Federal Reserve and the European Central Bank, as well as the latest US job market update. How is money moving in the meantime? EPFR’s Global Head of Customer Solutions, Steve Muzzlewhite, takes a look at our latest fund flow data.
Investors take a two C approach in late April
China and cash were by far and away the most popular asset classes during the fourth week of April as investors and markets braced for another round of rate hikes in early May.
Weekly fund flows highlights – 24th April 2023
Latest EPFR fund flow data reports outflows for equity funds and money market funds, and inflows towards bond funds, and China and India equity funds.
Chinese economy lays down a marker
With mud season keeping the conflict in Ukraine deadlocked and the next round of major central bank meetings still a fortnight away, investors turned their attention to taxes, corporate earnings and China’s economy during the third week of April.
Data-driven towards another rate hike?
The second week of April offered investors two data points, the latest US jobs report and the inflation numbers for Match, that they hoped would make the case for a pause in the Federal Reserve’s tightening cycle. Although headline inflation in March came in at a one-year low and the number of new non-farm jobs created was the least in over two years, investors were left hoping that the Fed will focus on the trends rather than the actual, positive numbers.