A Tale Of Two Markets

US equity funds took in another $6.3 billion on net over the latest weekly reporting period, if you were curious.

The latest haul marked the eighth consecutive weekly inflow to US-focused ETFs and mutual funds, which’ve taken in more than $114 billion YTD on net so far.

European equity funds, on the other hand, saw a fourth straight weekly outflow. For the year, they’ve seen a net $22.23 billion hit the exits.

The figure above makes for a rather stark juxtaposition. Suffice to say European shares are out of favor and, I dare say, could become more so in light of political turmoil in France.

Thanks (or no thanks, depending on how you want to look at it) to the drama in Paris, European shares stumbled to their worst week since October.

By contrast, US shares managed another weekly gain as encouraging inflation data served to offset the Fed’s unconvincing pretensions to hawkishness.

For the year, the S&P’s up ~14.5%, outperforming the European benchmark by more than 700bps.

Coming quickly back to the flows story, Japanese shares saw a fifth week of outflows while EM shares saw a second weekly inflow. Globally, equity funds took in a net $6.3 billion, which is to say the US was once again responsible for most of the net buying.

All in all, equity funds have seen $197 billion of inflows this year. The split’s $386.5 billion to ETFs and $189 billion from mutual funds.


 

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