For the week ending Aug. 26, global equity funds experienced their first weekly outflow since May 20, as investors grew cautious ahead of two high‑profile events: the earnings report from AI leader Nvidia and remarks expected from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
Outflows and inflows by region
According to LSEG Lipper data, investors withdrew a total of $5.87 billion from global equity funds. U.S. equity funds bore the brunt of the sell‑off, posting net sales of $22.33 billion. By contrast, European equity funds attracted $7.92 billion of new money, and Asian equity funds saw $4.8 billion in net inflows.
Sector performance
Technology funds remained a bright spot, pulling in $3.2 billion as investors bet on continued demand for AI‑related products. Metals and mining funds added $489 million, while financial‑sector funds suffered net outflows of $948 million.
Bond and money‑market activity
Global bond fund inflows eased to a four‑week low of $10.25 billion. Short‑term bond funds, however, enjoyed a seven‑week high with $6.29 billion of net inflows. Euro‑denominated bond funds attracted $1.09 billion, but high‑yield bond funds saw their first weekly outflow since July 29, losing $1.77 billion.
Money‑market funds reversed a four‑week inflow streak, recording net outflows of $19.74 billion.
Commodities and emerging markets
Precious‑metal funds, led by gold, surged to a six‑month high with $4.21 billion of net inflows. Energy funds posted a second consecutive weekly outflow of $313 million.
In emerging markets, equity funds continued to attract capital, adding $709 million for the seventh straight week. Emerging‑market bond funds also saw net inflows of $956 million.
Key drivers
Nvidia’s forecast on Wednesday projected a 70 percent jump in revenue for the next fiscal year, easing some concerns about the sustainability of AI demand despite ongoing supply constraints. Investors are also watching Warsh’s upcoming remarks, after three Fed officials recently warned that inflation remains stubbornly high.
These mixed flows illustrate the market’s sensitivity to both corporate earnings expectations and macro‑economic signals from the Federal Reserve. As the week progresses, further data releases and policy commentary will likely shape the direction of global capital allocations.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
