Global equity funds snap 13-week inflow streak

Aug 28 (Reuters) - Global equity ‌funds snapped a ​13-week ​streak of inflows in the week ended August 26, as investors turned cautious ahead of an earnings report from ‌AI heavyweight Nvidia and potentially pivotal remarks from Federal Reserve ⁠Chair Kevin Warsh.

Investors withdrew $5.87 billion from global equity funds during the week — the first ‌weekly outflow since May 20 — ‌and U.S. equity funds recorded sizable net sales of $22.33 billion, according to LSEG Lipper data.

Nvidia on Wednesday forecast a 70% jump in ​revenue for the next fiscal year, easing concerns about AI demand even as supply constraints remain.

Attention is turning to Warsh's remarks at ⁠the Jackson Hole Symposium on Friday, after three Fed officials warned about persistently high inflation.

Investors, however, ​bought European equity funds of $7.92 billion and Asian equity funds of $4.8 billion during the week.

Among sectoral funds, technology attracted ​net inflows of $3.2 billion, while metals ‌and mining funds drew $489 million. Financial-sector funds, however, recorded net outflows of $948 million.

Inflows into global bond funds eased to ⁠a four-week low of $10.25 billion during the week.

Short-term bond funds remained popular, attracting a seven-week high of $6.29 billion in net inflows.

Euro-denominated bond funds also attracted ⁠inflows of $1.09 billion, while investors withdrew $1.77 billion from high-yield bond funds — their first weekly ​outflow since July 29.

Money market funds recorded net outflows of $19.74 billion, ending a four-week streak of inflows.

Among commodity funds, net inflows into gold and other precious-metals funds ‌surged to a six-month high of $4.21 billion during the week. Energy funds, meanwhile, posted a second consecutive weekly ‌outflow of $313 million.

In emerging markets, investors bought a net $709 million in equity ⁠funds, marking a seventh consecutive ‌week of inflows. Bond ​funds also attracted net weekly inflows of $956 million, according to data covering 28,976 funds.

(Reporting by Gaurav Dogra; editing by ‌Barbara Lewis)

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