(Boursier.com) — European equities are recovering. Last proof to date, the equity funds of the Old Continent recorded 3.4 billion dollars of entries over the week ended January 25, a level almost unheard of for almost a year. For the second week in a row, European stocks are posting a positive flow after 48 straight weeks of outflows, shows data from EPFR Global picked up by Bank of America.
Funds dedicated to emerging market equities attracted $7.9bn while US equity funds recorded only $300m of inflows, for what nevertheless constitutes the first positive flow towards the segment in four weeks. Among sectors, the bank’s strategists point to flow data showing “capitulation” in technology and healthcare, with the trend in recent weeks the worst since January 2019.
Bond funds recorded a fourth consecutive week of inflows ($12.2 billion), while assets in US money market funds reached a record high of $4.8 trillion. There is “still a lot of cash lying around”, note the BoA teams.
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