LONDON (Reuters) – Traders plowed $14.2 billion into international fairness funds this week, the biggest quantity in a 12 months as traders jumped on to 2019’s inventory market rally, Financial institution of America Merrill Lynch mentioned on Friday, citing movement information supplier EPFR.
An index of worldwide shares is up greater than 16 % because the finish of 2018 as falling market volatility and a renewed dovishness from international central banks, led by the U.S. Federal Reserve has boosted threat urge for food throughout the board.
BAML mentioned many of the inflows went into trade traded funds whereas mutual funds noticed internet outflows.
U.S. fairness funds have been the most important beneficiaries with internet inflows of $25.5 billion whereas rising markets noticed internet outflows.
European funds additionally noticed $4.6 billion of outflows after the European Central Financial institution slashed its development forecasts and signaled a cautious financial outlook at its newest coverage assembly.
The urge for food for threat spilled over into bond markets as properly with funding grade debt notching up the eighth consecutive week of inflows.
Reporting by Saikat Chatterjee; Modifying by Tommy Wilkes