Global Equity Funds Pull In $51 Billion as Europe Leads Inflows
Investors poured a net $50.99 billion into global equity funds in the week to November 11, the largest weekly inflow since September 23, as demand for European shares surged despite a selloff in US technology stocks.
European funds accounted for most of the money. Net inflows of $35.13 billion into European funds were the largest weekly total since June 2021, according to LSEG Lipper data, Reuters reported. US funds drew $6.6 billion and Asian funds $6.15 billion over the same week.
The rush into European equities came as strong company earnings and lower crude oil prices lifted sentiment. The pan-European STOXX 600 reached a record high of 666.58 on Thursday, helped by strong earnings from Italian lender UniCredit, robust 2027 profit margin forecasts from AI equipment maker Siemens Energy, and an encouraging earnings outlook from US-based neocloud company CoreWeave.
Technology funds still drew money
The rotation into Europe did not mean investors abandoned technology altogether. Among sector funds, technology attracted net inflows of $2.62 billion, healthcare $833 million and financials $820 million, while industrials recorded weekly net outflows of $1.07 billion.
The inflows arrived in a week when US technology shares were under pressure. Nvidia’s board has approached Arm chief Rene Haas as it searches for a successor to Jensen Huang, who stepped down as chief executive, and US stock futures steadied after a sharp fall earlier in the week. US wholesale inflation hit 6.5% in October, its fastest pace in four years, adding to the uneasy mood in American markets.
Even so, the flow data show investors kept buying shares rather than retreating to cash. The previous week, global equity funds had already drawn $38.63 billion in the week to November 4, their seventh consecutive week of inflows.
Bonds lose favour as cash is pulled
Bond funds went the other way. Global bond funds recorded net weekly outflows of $507.89 million, ending a seven-week run of inflows. Government bond funds saw net outflows of $488.8 million, after net inflows of $5.17 billion the previous week.
Investors also withdrew a net $1.72 billion from dollar-denominated global bond funds, while buying a net $2.07 billion in corporate bond funds. Money market funds saw net withdrawals of $37.48 billion, after net purchases of $174.22 billion in the previous week.
Commodities stayed in favour. Gold and other precious metals funds attracted net inflows of $614 million for a second straight week, and energy funds drew $215.43 million, extending their run of net purchases to four consecutive weeks.
Emerging markets join the inflow
Emerging-market equity funds attracted a net $4.65 billion, their largest weekly inflow in three weeks. Emerging-market bond funds, by contrast, saw investors withdraw a net $657.44 million, marking a third consecutive week of outflows.
The figures, covering a combined 29,202 funds, suggest the appetite for shares remains broad even as the US technology rally wobbles. Traders Union, summarising the same LSEG Lipper data, noted that European funds absorbed the largest weekly inflows since June 2021.
Whether the rotation holds will depend on what comes next: the earnings season winding down, oil prices, and the fate of the US technology trade that has driven markets for much of the year. For now, though, the money is moving — and it is moving to Europe.
