News Digest:

Equity funds saw their first weekly outflow in four weeks in what analysts say is a result of concerns over slower growth rates in China and a modicum of caution ahead of the Fed’s policy meeting, a news report says.

Data from Refinitiv Lipper indicates that global equity funds observed net sales of $2.67 billion during the week-ended July 19, booking their first weekly outflow since June 21. The slow pace of growth in the Chinese economy over the second quarter suggested a decrease in both home and overseas demand.

Takeaway:

The expectations of a rate hike caused further concerns in the market as investors withdrew $3.04 billion from US equity funds while replacing them with Asian and European funds to the tune of $609 million and $336 million respectively. Sectoral equity funds, however, attracted collective inflows of $1.78 billion.

End Notes

Source: https://www.reuters.com/markets/global-markets-flows-2023-07-21/