Investors Withdraw from Equity Funds Amid Inflation Fears Triggered by Rising Oil Prices
Global equity funds experienced significant outflows of $15.52 billion in the week through September 9, driven largely by net sales of U.S. equity funds totaling $32.27 billion. The trend was attributed to rising oil prices and concerns over inflation following heightened tensions between the U.S. and Iran. Brent crude reached a four-month high of $109.97 per barrel on Friday, reinforcing fears that elevated energy costs could lead central banks like the Federal Reserve to raise interest rates soon. Inflation data from August also showed persistent price pressures, further supporting expectations for an upcoming rate hike by the Fed. Meanwhile, sectoral funds saw inflows of $2.92 billion in technology and financials, while global bond funds attracted smaller amounts compared to recent weeks.
Topics: central_banks inflation investor_behavior oil_prices