Global equity funds extend inflow streak to 11 weeks as earnings optimism lifts risk appetite

Global equity funds attracted fresh investor money for an 11th straight week in the week ended August 5, as a robust corporate earnings season and easing crude oil prices encouraged investors to increase exposure to risk assets, according to Reuters, citing LSEG Lipper data.

Investors poured a net $21.15 billion into global equity funds during the week, following net inflows of approximately $27.72 billion in the previous week, reflecting sustained confidence in equity markets despite lingering macroeconomic uncertainties.

Investor sentiment was supported by a series of upbeat corporate earnings. Reuters reported that Amazon posted its strongest cloud computing growth in more than four years last week, while Caterpillar and Palantir Technologies also delivered stronger-than-expected quarterly results earlier this week, reinforcing confidence in the health of the global economy and technology sector.


Corporate earnings have remained a key driver of market optimism. According to the news agency, results from 808 companies in the MSCI World Index that have reported so far show combined quarterly profits rising 40.9% year-on-year, with roughly 75% of companies exceeding analysts' expectations.

Europe Leads Regional Inflows
European equity funds attracted $12.52 billion, marking their largest weekly inflow since July 8 and accounting for the biggest share of global equity investments during the week.

Asian equity funds also remained in demand, recording $8.15 billion in net inflows.

In contrast, U.S. equity funds bucked the broader trend, registering net outflows of approximately $1.58 billion during the same period.

Technology Inflows Moderate
Sector-wise, technology funds continued to receive fresh investments, although inflows slowed to a six-week low of $1.44 billion.

Industrial funds drew $1.08 billion, while consumer discretionary funds attracted $710 million. Healthcare funds also remained popular, recording net inflows of $653 million.

Bond Funds See Strong Buying
Global bond funds also witnessed healthy demand, attracting $12.27 billion in net inflows, their strongest weekly purchase in three weeks, Reuters reported.

High-yield bond funds led the gains with $3.66 billion in inflows, the highest level in five weeks. Short-term bond funds attracted $3.43 billion, while loan participation funds recorded net investments of $915 million.

Money Market Funds Rebound
Money market funds reversed recent weakness, drawing $57.48 billion in net inflows after experiencing three consecutive weeks of outflows, highlighting renewed demand for liquid investment vehicles alongside continued equity buying.

Precious Metals Stay in Favor
Commodity funds delivered mixed performance during the week.

Gold and other precious metals funds extended their winning streak to a fourth consecutive week, attracting $345 million in net inflows as investors maintained exposure to traditional safe-haven assets.

Energy funds, however, remained under pressure, recording their second straight week of outflows with investors withdrawing $153 million.

Emerging Markets Attract Fresh Capital
Emerging market assets also benefited from improving investor sentiment.

According to Reuters, emerging market equity funds received $9.26 billion in weekly inflows, the highest level in more than five months. Emerging market bond funds also posted positive flows, attracting $303 million in net investments.

The data covered 28,959 investment funds globally, underscoring continued investor preference for equities and fixed-income assets amid resilient corporate earnings and improving market sentiment, according to Reuters.