Global equity funds registered net outflows for the first time in three weeks in the week to Nov. 9, undermined by caution ahead of the U.S. midterm election results and the release of key inflation data.
According to Refinitiv Lipper data, investors exited a net $11.56 billion worth of global equity funds, after obtaining funds worth $13.98 billion in the previous week.
The U.S. and European equity funds recorded withdrawals worth $10.5 billion and $830 million respectively, although Asian funds saw net purchases of $290 million.
By sector, tech witnessed net selling worth $1.87 billion, the biggest outflow in 11 weeks, but financials and healthcare, both received inflows of about $450 million each.
The Federal Reserve raised interest rates by three-quarters of a percentage point earlier this month and said its battle against inflation will require borrowing costs to rise further.
“The Fed’s relentless inflation fight is adding more fear than normal,” said Gerry Frigon, president at Taylor Frigon Capital Management.