(Reuters) -Global investors pulled money out of equity funds in the week through July 16 as U.S. President Donald Trump’s tariff threats and an inflation report indicating an increase in U.S. consumer prices, dampened risk sentiment.
Investors withdrew a net $5.3 billion from global equity funds during the week, registering their first weekly net sales since the week to June 25, LSEG Lipper data showed.
A U.S. inflation report on Tuesday showed that consumer prices increased at the sharpest pace in five months in June, suggesting tariffs were starting to have an impact on prices and potentially keeping the Federal Reserve on the sidelines until September.
Investors divested a net $11.75 billion worth of U.S. equity funds following two weekly net purchases in a row. In contrast, they added European and Asian funds worth a net $4.66 billion and $718 million, respectively.
Sectoral funds had a mixed set of data as the healthcare and technology sectors witnessed $1.91 billion and $578 million net outflows, while investors snapped up industrial and financial sector funds totaling a net $1.11 billion and $791 million, respectively.
Global bond funds saw a buying spree extended into a 13th straight week, with approximately $12.85 billion net investments flowing into these funds.
Euro denominated bond funds, short-term bond funds, high yield bond funds and government bond funds were popular as these funds witnessed a robust $3.57 billion, $3.08 billion, $1.98 billion and $1.33 billion, respectively in net inflows.
Money market funds, meanwhile, lost about $21.3 billion in their first weekly net sales in three weeks.
Gold and precious metal commodity funds remained popular for an eighth straight week as these funds saw nearly $741 million worth of weekly net investments.
Emerging market funds came under pressure during the week as equities lost $208 million, while bonds had a net $1.12 billion weekly sales that ended an 11-week-long buying trend, data for a combined 29,644 funds showed.
(Reporting by Gaurav Dogra in Bengaluru; Editing by Sharon Singleton)
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