European stocks see highest weekly inflows since February 2022

Investing.com -- European stocks experienced their highest inflow since February 2022, with $4.1 billion entering the market, according to Bank of America. This surge was part of a week that saw heavy inflows into money market funds.

Money market funds attracted an inflow of $53.1 billion, while stocks drew $22.9 billion, bonds $12 billion, and gold $1 billion in the week leading up to March 5, as per data cited in a Bank of America note from EPFR Global.

In other noteworthy weekly flows, gold recorded its largest 4-week inflow on record at $9.9 billion. Cryptocurrencies, on the other hand, saw their largest 4-week outflow on record, amounting to $3.6 billion. Treasuries experienced their biggest outflow in 11 weeks, with $1.2 billion leaving the market.

Europe also saw its largest 4-week inflow since August 2015, reaching $12 billion. Emerging markets (EM) had their largest inflow in three months at $2.4 billion, and tech stocks saw their first inflow in five weeks, attracting $2.6 billion.

A team of strategists led by Michael Hartnett suggested that conditions are ripe for German bund yields to trade above US Treasury by the end of the year. This prediction is based on the European rearmament, which suggests fiscal excess in the EU and UK, while Dogecoin’s performance indicates potential fiscal austerity in the US.

International stocks, particularly those from China and Europe, are expected to have a strong year. The next equity trade is predicted to be a "weak US dollar" trade. Investors are also advised to consider oversold US semiconductors and lagging India.

In terms of regional inflows, the US experienced its third week of inflows at $8.5 billion. Europe had its fourth week of inflows at $4.1 billion. Emerging market stocks saw inflows resume at $2.4 billion, and Japan experienced its second week of inflows, attracting $3 billion.

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