Global equity funds draw inflows for 11th week as upbeat earnings lift sentiment

• European equity funds led with $12.52 billion in inflows (largest since July 8), Asian funds drew $8.15 billion, while U.S. funds saw $1.58 billion in outflows
• Technology sector inflows slowed to a six-week low of $1.44 billion, while industrials, consumer discretionary, and healthcare attracted $1.08 billion, $710 million, and $653 million respectively
• Emerging market equity funds surged to a five-month high of $9.26 billion in inflows, while global bond funds attracted $12.27 billion (largest in three weeks) and money markets gained $57.48 billion

Global Equity Funds See Continued Inflows Amid Strong Earnings

Key Highlights

Global equity funds attracted $21.15 billion in net inflows for the week ended August 5, marking the 11th consecutive week of positive flows, though down from the prior week's $27.72 billion. Strong earnings reports and cooling crude oil prices drove investor appetite for risk assets.

Earnings Performance

Approximately 808 MSCI World constituent companies reported a combined 40.9% year-over-year profit increase for the latest quarter, with roughly 75% beating analyst forecasts. Major contributors included Amazon, which posted its strongest cloud growth in over four years, along with strong results from industrial bellwethers.

Regional Breakdown

European equity funds led with $12.52 billion in inflows—the largest weekly amount since July 8—while Asian funds captured $8.15 billion. U.S. equity funds bucked the trend, experiencing $1.58 billion in outflows.

Sector Flows

Technology fund inflows slowed to a six-week low of $1.44 billion. Meanwhile, industrials attracted $1.08 billion, consumer discretionary drew $710 million, and healthcare funds received $653 million.

Fixed Income and Other Assets

Global bond funds saw $12.27 billion in net purchases, the largest weekly inflow in three weeks. High-yield funds led with $3.66 billion, while short-term bond funds added $3.43 billion.

Money market funds reversed three weeks of outflows with $57.48 billion in inflows. Precious metals funds continued their popularity streak with $345 million in their fourth consecutive week of inflows, while energy funds experienced their second straight weekly outflow of $153 million.

Emerging market equity funds surged to a five-month high with $9.26 billion in inflows.