Global Investors Inject $17.5B into Stock FundsFollowing 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