Global equity funds experienced their strongest inflows in five weeks, totaling $36.33 billion, in the seven days leading up to February 18. This surge signals easing investor concerns regarding artificial intelligence stocks and a rotation into other sectors. Renewed optimism about potential Federal Reserve rate cuts also boosted sentiment toward U.S. growth.
European funds led regional inflows, attracting $17.22 billion, supported by a record high for the STOXX 600 index. U.S. funds saw a significant rebound with net inflows of $11.77 billion after a previous week's outflow. Asian funds drew $3.8 billion.
Sectorally, industrials, metals and mining, and technology funds were in high demand, attracting substantial weekly net inflows. Meanwhile, global bond funds continued their strong performance with a seventh consecutive week of net inflows, totaling $19.79 billion. Money market funds also extended their inflow streak.
However, gold and precious metals funds experienced net outflows of $1.86 billion, breaking a five-week trend of positive inflows. Emerging markets equity funds attracted $8.1 billion, contributing to a robust year-to-date total. Analysts suggest that while the AI rally may have further to run, emerging market equities could offer more resilience if the sector experiences a downturn.