Global Investors Inject $17.5B into Stock Funds
Following to data from a Bank of America Merrill Lynch Global Research, in the week ended November 5, global investors injected the amount of $17.5 billion into stock funds after $20 billion the previous week, marking these funds' biggest two weeks of inflows since October 2013.
U.S.-focused
stock funds worldwide posted inflows of $15.3 billion in the latest
week, all via exchange-traded funds, according to the report, which also
cited data from fund-tracker EPFR Global.
Scott
Anderson, chief economist at Bank of the West, said institutional money
including the hedge funds are heavy users of ETFs. "Global central
bank's are essentially giving the hedge funds the green light to extend
their long positions."
BofA
said the U.S. accounted for the lion's share of equity inflows with
Japan, Europe, China funds all recording modest redemptions despite
recent moves by the Bank of Japan and prospective easing in Europe and
China.
On
Oct. 31, the Bank of Japan shocked global financial markets by
expanding its massive stimulus spending in a stark admission that
economic growth and inflation have not picked up as much as expected
after a sales tax hike in April.
Source: Reuters
