US fairness funds appeal to inflows on inflation reduction, earnings optimism

(Reuters) – U.S. fairness funds attracted inflows for the primary time in three weeks within the seven days to February 19, buoyed by easing inflation issues and powerful fourth-quarter company earnings that boosted danger urge for food.

Traders purchased a internet $1.59 billion value of U.S. fairness funds through the week, registering solely their second weekly internet buy in seven weeks based on knowledge from LSEG Lipper.

The S&P 500 index hit a document excessive of 6147.45 on Wednesday, fueled by an bettering company earnings outlook and powerful outcomes from most of its constituents.

About 76% of S&P 500 corporations have posted better-than-expected fourth-quarter earnings outcomes, LSEG knowledge for about 85% of corporations confirmed.

U.S. multi-cap fairness funds drew a internet $1.66 billion in purchases, the most important weekly influx since November 20. Massive-cap funds additionally attracted a internet $877 million however small- and mid-cap funds noticed $1.62 billion and $718 million value of internet outflows, respectively.

Sectoral funds suffered outflows for a second successive week with buyers divesting shopper discretionary and healthcare funds value a internet $792 million and $593 million, respectively.

Bond funds remained standard for a seventh consecutive week with buyers pumping in a internet $8.62 billion.

Normal home taxable mounted revenue funds noticed $2.14 billion value of internet purchases, the seventh weekly influx in a row.

Traders additionally snapped up short-to-intermediate authorities and treasury funds, short-to-intermediate investment-grade funds, and mortgage participation funds value a internet $1.77 billion, $1.68 billion and $1.6 billion, respectively.

U.S. cash market funds noticed a internet $14.11 billion value of gross sales, the third weekly outflow in 4 weeks.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Modifying by Kirsten Donovan)