Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

BREAKING NEWS

BREAKING NEWS

First net inflows into global equities in 10 weeks - BAML

First net inflows into global equities in 10 weeks - BAML
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 23, 2019. REUTERS/Brendan McDermid -
Copyright
BRENDAN MCDERMID(Reuters)
Text size Aa Aa

LONDON (Reuters) - Investors have added to their global equity holdings for the first time in 2-1/2 months and continued to pile into bonds, Bank of America Merrill Lynch said on Friday, as worries about the U.S.-China trade spat sent shudders through financial markets.

The net inflow into equities totalled $900 million (£709 million) in the week to Wednesday, the first in 10 weeks, the bank said, citing EPFR data. That is eclipsed by the $135 billion that has left stocks year to date.

Some $3.9 billion left emerging market equities, the biggest since June last year.

Global equities, which rallied 15% until U.S. President Donald Trump upped the ante in early May, have retreated as tit-for-tat tariffs kicked-in and fading hopes of a trade deal with China in the near-term kept investors away from risky assets.

Washington's Huawei ban added to trade tensions between the world's two largest economies and triggered worries about a prolonged standoff over technology.

"U.S.-China tech cold war to run for years, political shift to protectionism and redistribution well underway in West," BAML said.

Global bonds saw inflows of $6.4 billion, adding to the $158 billion that's already gone into safe-haven debt this year.

Despite growing worries over a trade war, BAML said it still expects new highs in risk assets this summer and cannot see "Trump escalating China trade war from here".

(Reporting by Thyagaraju Adinarayan; Editing by Catherine Evans)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.