LSEG Lipper data shows that investors poured more than $158 billion into global money market funds in the week ended January 8, which was the second largest single-week net increase since April 2020.
These measures were prompted by concerns about: Potential tariff increases As a change of government approaches in the United States.
Investors also appeared cautious ahead of a key jobs report that could reshape expectations for a rate cut by the Federal Reserve.
See also: U.S. trade deficit with Vietnam tops $110 billion as currency depreciates
U.S. President-elect Donald Trump, who will take office on January 20, has pledged to impose a 10% tariff on all global imports to the United States. He also threatened to implement 25% Import tariffs to Canada and Mexico on his first day in office.
Global equity funds received inflows for the third consecutive week, netting $11.36 billion.
European equity funds saw a net inflow of $8.7 billion, the largest net inflow in three weeks. Meanwhile, investors added a net $5.6 billion to Asian funds during the same period, but withdrew a net $5.05 billion from U.S. funds.
Global sector equity funds posted their first weekly net buying in five weeks, reaching $526.24 million.
After five consecutive weeks of net selling, investors poured $1.13 billion into the technology sector. Net purchases in the communications services industry were $413 million.
Global bond funds also saw significant activity, receiving $19.5 billion, their second inflow in the past four weeks. Government bond funds alone attracted $1.94 billion, their second inflow in six weeks, while loan participation funds attracted $2.24 billion.
- Reuters Additional editing by Jim Pollard
See also:
Trump may declare national economic crisis over new tariffs: CNN
Trump plans to restrict China's electric vehicle supply chain
China to take on more debt in response to Trump tariffs
China's central bank 'allows yuan to depreciate' as trade risk
Chinese media on Trump: “There are no winners in the tariff war”
China 'keen to negotiate trade deal to reduce tariff threat'
