Investing.com -- The week ending February 12 saw a surge in global equity funds, with a net worth of $5.66 billion being purchased by investors. This was a significant reversal from the previous week, which saw a net sale of $2.47 billion, according to data from LSEG Lipper. The influx was largely driven by a rate cut from the Bank of England, which sparked a rally in European shares.
The pan-European STOXX 600 index hit new records on five consecutive days during the week, fueled by robust earnings from companies such as drugmaker AstraZeneca (NASDAQ:AZN), copper producer Aurubis, and financial services group Societe Generale (OTC:SCGLY). This resulted in European equity funds drawing a substantial $6.03 billion in inflows during the week, an increase from the previous week's net purchases of about $3.3 billion.
Asian funds also saw a boost with a net inflow of $1.46 billion. However, U.S. funds recorded net sales of $2.25 billion, reflecting investor caution over President Donald Trump's tariff policies.
Global sectoral equity funds experienced their first weekly outflow in six weeks, with a net sale of $258 million. Consumer discretionary and healthcare funds led the weekly outflows with net sales of $987 million and $645 million respectively.
Global bond funds continued to be popular among investors for the seventh consecutive week, with net purchases totaling $10.36 billion. Global short-term bond funds received the highest influx in five weeks with $6.22 billion. Loan participation funds and high yield bond funds also saw robust inflows of $1.3 billion and $1.2 billion respectively.
Money market funds saw an influx of $20.1 billion, following net purchases of about $75.13 billion the previous week.
In the commodities sector, demand for gold and other precious metals funds reached a four-and-a-half-month high as investors poured $1.41 billion into these funds. Energy funds also saw a slight increase with $29.19 million in inflows.
Emerging market equity funds experienced a 14th consecutive week of sales as data covering 29,627 of these funds showed outflows of $1.11 billion. However, bond funds added a net $695 million, marking their sixth consecutive weekly inflow.
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