admin Investors gravitated towards safer options amid concerns over slowing growth in China and Europe as well as uncertainty regarding the Federal Reserve’s interest rate outlook which in turn attracted robust inflows in the Global money market funds.
Reports for Reuters have cited that, investors poured about $57.38 billion into global money market funds in their most significant weekly net purchases since June 7, LSEG data showed.
Investors favoured safer assets on worries that a slowdown in China and Europe would weigh down global growth.
Data from the euro area and Britain showed activity in the services industries contracted in August. Meanwhile, a private-sector survey showed that China saw services activities expanding at the slowest pace in eight months in August.
By region, U.S., European and Asian money market funds drew $32.18 billion, 20.75 billion and $1.64 billion, respectively, in inflows.
Meanwhile, withdrawals from global equity funds eased as investors pulled out a net $2.45 billion, the smallest amount in five weeks.
Investors withdrew $463 million from communication services sector funds, while metals & mining, healthcare and consumer staples saw outflows of about $300 million each.
On the other hand, global bond funds drew $9.24 billion worth of inflows, the biggest amount in nine weeks.
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