Recent global events have triggered significant changes in financial markets, reflected in investor behavior.
Equity Withdrawals
Last week, $19.82 billion was withdrawn from global equity funds, marking the largest weekly outflow in three months. Investors pulled $18.43 billion from U.S. equity funds, the biggest exit since March, while Asia saw $2.86 billion in outflows. Europe was the exception, attracting $640 million.
Bond Markets and Sector Investments
Despite the overall negative sentiment towards equities, some sectors attracted new investment. Sector equity funds garnered $573 million in net inflows. The technology sector led with $1.5 billion, followed by industrials at $752 million. Conversely, financials suffered close to $1.5 billion in outflows. Global bond funds saw $13.13 billion in net inflows, extending their winning streak to nine weeks.
Market Reactions and Economic Signals
U.S. stocks ended the week in the red, remaining uncertain as everyone awaited President Donald Trump's decision on supporting Israel. The S&P 500 fell by 0.15%, while Dow Jones increased by 0.02%. Despite global threats, some investors continue to bet on stock growth, observing the market's recovery since April, which has ignored inflation and trade conflicts.
Despite current uncertainties in global affairs, financial markets remain active, with investors seeking opportunities in sectors like technology and bonds.
