Global equity funds suffered their biggest weekly net selling in two months in the seven days to March 1 as global stocks fell after strong U.S. economic data stoked fears about further rises in interest rates.
The MSCI’s All-World index of global shares (.MIWD00000PUS) dipped 2.64% last week to record its worst week since Sept. 23 on worries about Federal Reserve rate hikes as data showed robust U.S. personal consumption and spending in January.
Global equities, however, recovered some lost ground on Friday after Atlanta Federal Reserve President Raphael Bostic said he favoured “slow and steady” quarter-point U.S. rate increases to limit risk to the economy.
Data from Refinitiv Lipper showed global equity funds saw a net $13 billion worth of outflows in the week to March 1, the biggest amount since Jan.
The U.S. and European equity funds witnessed $12.9 billion and $660 million worth of net disposals; however, Asian funds drew a net $1.35 billion worth of inflows.
