US equity funds recorded strong inflows of $9.65 billion in the week ended October 22, snapping a two-week run of net outflows, as investor confidence improved amid a broadly positive quarterly earnings season.
US equity funds
The rebound was supported by upbeat earnings reports from major companies, including General Motors, Coca-Cola, and 3M. US bond funds also attracted significant interest, drawing $8.4 billion in inflows for a third consecutive week of net purchases.
Short- to intermediate-term investment-grade bond funds led fixed-income demand, with $3.6 billion in inflows, the largest weekly increase since early July. Municipal bond funds and general domestic taxable bond funds attracted $1.1 billion and $556 million, respectively.
US money market funds recorded $22.81 billion in inflows, marking a fourth week of net purchases in the past five weeks.
Among equity sectors, technology funds led inflows with $1.38 billion, the strongest weekly gain in three weeks. Industrial sector funds drew $805 million, while consumer staples funds attracted $586 million.
Easing US–China trade tensions and optimism over potential progress toward a trade agreement, ahead of an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, further boosted appetite for risk assets.
Global equity fund inflows
Global equity funds posted their largest weekly inflow in three weeks, attracting $11.03 billion through October 22, the strongest weekly increase since early October.
Asian equity funds saw $2.8 billion in net inflows, while European equity funds experienced $2.25 billion in net outflows during the week.
Investors also added $886 million to gold and precious metals equity funds and $819 million to industrial sector funds. Gold and precious metals commodity funds remained in demand for a ninth consecutive week, attracting $7.16 billion in weekly inflows.
Bond funds
Global bond funds drew approximately $17.3 billion in inflows, extending their streak of net purchases to 27 consecutive weeks.
Euro-denominated bond funds recorded $3.2 billion in net inflows, following strong demand the previous week. Government bond funds and corporate bond funds also attracted $3.1 billion and $1.78 billion, respectively.
Money market funds saw $13.1 billion in net inflows as investors reversed the previous week’s net outflows.
In emerging markets, bond funds remained popular for a third straight week, drawing $1.2 billion in inflows. However, emerging market equity funds recorded $440 million in net outflows for a second consecutive week.
