Investors poured a record $43bn into global equities markets last week, according to Jefferies
The bulls are back, according to investment bank Jefferies, as investors heaped a record net $43bn (£31bn) into global equities funds and exchange-traded funds (ETFs) last week.
The US was the biggest beneficiary, grabbing $35bn of inflows to top the previous high of $31bn funnelled into the country in the wake of President Trump’s election victory.
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According to a note written by Jefferies analysts, “there didn’t appear to be any catalyst to influence investor sentiment so dramatically”.
“Despite rising rates, it appears that investors were ‘parking’ their cash in money markets waiting for an opportune time to buy US equities,” the note added. Last week, investors pulled $36bn from global money markets.
The optimistic turn towards equities follows February’s brief foray into correction territory, which sparked concerns that the nine-year bull market might finally be charging to an end.
“The bottom line is that both US corporates and investors have shown a willingness to buy equities and pertinently US shares on ‘the dip’,” said Jefferies analysts. “With the greenback strangely subdued, the current environment has also allowed emerging markets to flourish.”
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