Global equity fund inflows surge to three-week high on AI optimism

Global equity funds attracted their largest weekly inflow in three weeks in the week to July 8, as strong demand for artificial intelligence-linked technology products and cooling expectations for Federal Reserve rate hikes boosted risk appetite. Global equity funds recorded net inflows of $49.23 billion during the week, their biggest weekly inflow since June 17, according to LSEG Lipper data. Upbeat June manufacturing activity reports pointed to strong demand for AI-related products, including chips and computers. Expectations for robust earnings in the AI sector also supported investor sentiment. The technology sector is forecast to report 54.2% year-on-year growth in second-quarter net income, according to LSEG data based on analysts' average estimates. Regional flows US equity funds attracted $24.97 billion in inflows, their largest in three weeks. Investors also allocated $13.67 billion and $6.95 billion to European and Asian equity funds, respectively. Read More: UN digital agency launches initiative to boost trust in AI agents The technology sector drew strong interest, with funds attracting $11.49 billion in inflows, up more than a quarter from $8.88 billion the previous week. Financial and industrial sectors also recorded notable inflows of $1.52 billion and $789 million, respectively. Bond, money market flows   Global bond funds attracted $31.34 billion in inflows, the largest since at least 2019. Short-term bond funds, euro-denominated bond funds, corporate bond funds and government bond funds recorded weekly net purchases of $7.19 billion, $3.87 billion, $2.92 billion and $2.73 billion, respectively. Investors also allocated $83.76 billion to money market funds, marking their largest weekly net purchase since June 3. Gold and other precious metals commodity funds recorded an eighth consecutive weekly outflow, totalling $372 million. Emerging market data covering 28,884 funds showed equity funds lost about $500 million in their 11th consecutive weekly outflow. Bond funds, however, attracted net inflows of $1.66 billion.  

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