NEW YORK (Reuters) - Money flowing into global stocks and bonds slowed in the week to Nov. 3 as investors exercised caution ahead of anticipated policy easing from the Federal Reserve, fund tracker EPFR Global said on Friday, Nov 5.
The Cambridge, Massachusetts-based company said investors put about $3.78 billion into globally-tracked equity funds, the lowest since late August. Global bond funds attracted $3.4 billion, the lowest inflow since May, while investors pulled just under $2 billion from money market funds.
Investors did pour $1.4 billion into U.S. equity funds on Nov. 3, the day the Fed said it would buy $600 billion in Treasuries over the next eight months to drive down interest rates and stoke U.S. growth. But that wasn't enough to reverse a modest outflow on the week, EPFR said.
Few doubted the Fed would deliver more easing, but there was debate in the days before the announcement about the size and scope of its asset-buying program, with some expecting a more modest program that would have disappointed equity investors.
Expectations that Fed easing will further weaken the dollar suggested more tough times for Japanese exporters and prompted investors to pull cash from Japanese equity funds for the 18th time in the past 19 weeks, EPFR said.
EMERGING EQUITIES STILL IN DEMAND
Emerging market equities attracted more than $3 billion on the week, more than 85 percent of total equity fund inflows. This year, emerging equities have attracted $74.5 billion, not far from last year's record $83.3 billion inflow.
Chinese equity funds saw a $626 million inflow, followed by a $500 million inflow to Brazil and a $322 million inflow for Korea, EPFR said.
Record low interest rates in the United States and other developed economies have prompted widespread demand for higher-yielding emerging market assets.
Governments in Asia and Latin America have complained that Fed policy was driving up inflation in their economies and some have adopted capital controls to try to slow inflows.
Worries that more such policies may be around the bend slowed net flows into emerging market bond funds to their lowest in eight weeks, EPFR said.
Overall global bond funds still took in more than $1 billion on the week, though, with high yield bond funds inflows hitting a five-week high. Flows into U.S. bond funds climbed to nearly 89 percent of last year's record-setting total, EPFR said. - Reuters
The Cambridge, Massachusetts-based company said investors put about $3.78 billion into globally-tracked equity funds, the lowest since late August. Global bond funds attracted $3.4 billion, the lowest inflow since May, while investors pulled just under $2 billion from money market funds.
Investors did pour $1.4 billion into U.S. equity funds on Nov. 3, the day the Fed said it would buy $600 billion in Treasuries over the next eight months to drive down interest rates and stoke U.S. growth. But that wasn't enough to reverse a modest outflow on the week, EPFR said.
Few doubted the Fed would deliver more easing, but there was debate in the days before the announcement about the size and scope of its asset-buying program, with some expecting a more modest program that would have disappointed equity investors.
Expectations that Fed easing will further weaken the dollar suggested more tough times for Japanese exporters and prompted investors to pull cash from Japanese equity funds for the 18th time in the past 19 weeks, EPFR said.
EMERGING EQUITIES STILL IN DEMAND
Emerging market equities attracted more than $3 billion on the week, more than 85 percent of total equity fund inflows. This year, emerging equities have attracted $74.5 billion, not far from last year's record $83.3 billion inflow.
Chinese equity funds saw a $626 million inflow, followed by a $500 million inflow to Brazil and a $322 million inflow for Korea, EPFR said.
Record low interest rates in the United States and other developed economies have prompted widespread demand for higher-yielding emerging market assets.
Governments in Asia and Latin America have complained that Fed policy was driving up inflation in their economies and some have adopted capital controls to try to slow inflows.
Worries that more such policies may be around the bend slowed net flows into emerging market bond funds to their lowest in eight weeks, EPFR said.
Overall global bond funds still took in more than $1 billion on the week, though, with high yield bond funds inflows hitting a five-week high. Flows into U.S. bond funds climbed to nearly 89 percent of last year's record-setting total, EPFR said. - Reuters
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