Global Equity Funds See Big Inflows As Risk Appetite Rebounds In The Face Of Pandemic Turmoil

Global equity funds saw massive inflows as risk sentiment returned with investors believing that the Omicron variant won't bring a big setback to the world economy next year. According to Refinitiv data, investors purchased $33 billion worth of global equity funds in the week ending Dec. 22, compared with an outflow of $13.1 billion in the previous week.

U.S. equity funds lured an inflow of $27.5 billion, while Asian equity funds obtained $1.8 billion. On the other hand, European equity funds saw an outflow worth $1.5 billion.

Global stocks have made a strong recovery this week, after their downtrend earlier this month, buoyed by strong corporate earnings and reports that Moderna Inc's (MRNA.O) COVID-19 vaccine provides protection against the Omicron variant

Meanwhile, global bond funds received $5.4 billion, after seeing outflows in the previous week. Money market funds, on the other hand, saw an outflow worth $3.2 billion during the week, underscoring the positive risk sentiment. Among commodity funds, precious metal funds witnessed net sales of $578 million, their third consecutive weekly outflow.