(Reuters) – Investors pulled money from global bond and equity funds in the week to September 13, proceeding cautiously ahead of the Fed meeting, where further rate hikes are expected to curb soaring inflation.
Investor net withdrawal of $7. 32 Billion Global Bond Fund, largest weekly net sell-off since August 31, data from Refinitiv Lipper shows.
Chart: Fund Flows: Global Equity, Bond and Currency Markets https://fingfx.thomsonreuters.com/gfx/mkt/dwvkrxorjpm/Fund%20flow-%20 Global % 20 Stock % Bond %11 and %20 money %13market.jpg
The Fed raised the benchmark interest rate basis points, rising for the third time in a row, and officials expect rates to hit 4.4% this year, or 300 higher than the Fed forecast three months ago.
“Bond yields will peak sooner or later, although the exact timing is difficult. The market is now pricing in the final U.S. federal funds rate, which will be in March to March,” said Bimal Patel, senior fund manager at Canada Life Asset Management. 2023 Reached around June.
Global short- and medium-term bond funds saw them in 13 Largest weekly outflow of the week with a net outflow of $4.98 $1 billion while investors Also net exits of $3.28 Billion Dollar High Yield Funds.
Chart: Global Bond Funding Flows for the Week to September 23 https://fingfx .thomsonreuters.com/gfx/mkt/lbpgnkqgovq/Global%bond% 20fund%21 Flow %20 in %20week%End%Sept%2023.jpg
Meanwhile, global equity funds saw a fifth straight week of net selling, valued at 1.86 $1 billion.
Financials and consumer staples each lost $1.60 billion dollars and 300 million dollars in outflows, but both utilities and tech received about 300 hundred $10,000 in inflows.
” and other U.S. stock markets. Valuation multiples for these companies remain low and will remain beneficiaries of a longer-term inflation and rising interest rate environment, said Eugene Barbaneagra, their SEI portfolio manager.
Chart: Fund Flow: Global Equity Sector Fund https://fingfx.thomsonreuters.com/gfx/mkt/zjpqkrxkopx/Fund%10flow-%21 Global % 20 Equity % 21 Sector %11funds.jpg
Safer money market funds, on the other hand, attracted investor interest as they earned a net $24.23 One billion, the largest weekly capital inflow since July 6.
Commodity fund data shows that precious metal funds are in 86 Weekly Net Disposal Value $474 million US dollars. Investors also exited 39 million-dollar energy funds.
analyze24,300 Emerging Markets Funds Show Investors Sold Worth 2.28 10 $100 million stock fund, marking consecutive weekly outflows, while also exiting $2 .78 Billion Dollar Bond Fund.
Chart: Fund Flows: Emerging Markets Equities and Bonds https://fingfx.thomsonreuters.com/gfx/mkt/xmpjoazoqvr/Fund%10flow-%20EM%20Stock%20and%20bonds.jpg