Investors returned to global equity funds in force during the week to June 17, putting a net $55.22 billion into these vehicles, according to data from LSEG Lipper. That sum represents the largest weekly purchase of global equities in roughly 19 months, a momentum shift market participants linked to an interim agreement between the United States and Iran and related expectations about oil route reopening.
The U.S. and Iran signed an agreement on Wednesday that extends a ceasefire announced in April by another 60 days to give both sides time to negotiate a broader truce. The pact also specifies the full resumption of maritime traffic "with no charge" in the Strait of Hormuz, an international oil transit corridor whose partial closure by Tehran during the conflict had been associated with sharp rises in crude prices.
Market flows reflected optimism tied to that development. U.S. equity funds were the primary beneficiaries, drawing a weekly net inflow of $38.37 billion - the largest weekly sum for U.S. funds in 19 months. European equity funds attracted $10.66 billion, while Asian equity funds saw $3.92 billion in net purchases during the same period.
Sector-level activity highlighted technology as a major recipient of fresh capital. Technology sector funds notched a record weekly intake of $21.46 billion. Industrial-sector funds also stood out, with $2.49 billion in inflows - the largest weekly amount recorded since March 4.
Fixed income and cash instruments also saw meaningful activity. Global bond funds reported net weekly purchases of $17.17 billion, marking the 11th consecutive week of inflows for the asset class. Corporate bond funds led the bond-group inflows with $2.86 billion, the largest weekly net purchase for corporate debt in two months. Short-term bond funds and euro-denominated bond funds recorded weekly inflows of $1.44 billion and $1.25 billion, respectively.
Money market funds reversed the prior week’s outflows, with investors adding a net $40.03 billion after $19.02 billion of net sales the week before. That rotation back into cash-like instruments accompanied the broader shift into risk assets.
Not all asset groups saw inflows. Precious metal funds, including gold, experienced selling pressure for a fifth consecutive week, with $1.78 billion withdrawn in the latest period. Emerging market equity funds continued to suffer outflows for an eighth straight week, with $2.88 billion leaving those funds, and emerging market bond funds recorded $309 million in net sales.
The flow figures are drawn from a dataset covering 28,869 funds, as reported by LSEG Lipper. Investors’ positioning over the week appeared to favor U.S. and technology exposure while reducing allocations to precious metals and emerging market strategies.
Data source: LSEG Lipper data covering 28,869 funds.