World stocks were dragged lower on Wednesday by growing anxiety ahead of Washington’s end of week deadline to impose tariffs on Chinese imports, while the yuan rebounded after China’s central bank moved to calm investors.
Equity funds suffered their second-largest weekly outflows ever this week, with $29.7 bn pulled out of risky assets, BAML strategists said.
Global investors pulled more cash out of European and emerging markets in the past week, opting instead for US stocks, as robust economic growth encouraged a sixth straight week of inflows, BAML said.
Investors pumped $11.9 billion into global equities in the past week and also put money into bank loans, likely viewing the rise in US bond yields as reflecting a robustly growing economy, BAML said.
Global investors clung to their preference for the tech sector in May, with shares in so-called FAANG and BAT firms remaining the most crowded trade for 4th month.
The world’s biggest tech stocks were investors’ top pick for the third straight month despite mounting worries over regulation, BAML survey found.
Rising trade tensions between the US and China have sparked equity outflows, though so far there has only been a modest unwind of 2018’s most popular trades.
Bank of America Merrill Lynch (BAML) (BAC.N) and Credit Suisse reported mean gender pay gaps in their British operations of 28.7 percent and 39.2 percent respectively.
Appetite for equities came back with a vengeance this week, driving record inflows as concerns around trade dissipated and billions more were plowed into tech stocks.
Global investors cut equity holdings by the most in 2-years in Feb, a Bank of America Merrill Lynch survey showed, as world shares had their worst week since early 2016.