Inflows into world cash market funds soar as US tariffs deepen financial fears

(Reuters) – World cash market funds witnessed a surge in inflows within the week via March 5 as traders sought security following the USA’ transfer to escalate its commerce conflict by slapping steep tariffs on imports from Canada, Mexico and China, fueling considerations concerning the potential influence on the worldwide financial system.

Buyers pumped a large $61.32 billion into world cash market funds throughout the week, following a internet $39.55 billion price of purchases within the prior week, information from LSEG Lipper confirmed.

On the identical time, demand for world fairness funds dipped to a four-week low as these funds garnered simply $2.97 billion price of inflows throughout the week.

Particularly, U.S. fairness funds misplaced their sheen, witnessing about $9.54 billion in internet outflows throughout the week.

Then again, European and Asian funds noticed strong inflows price $5.87 billion and $5.83 billion, respectively, in the identical interval.

The expertise sector skilled a large $2.91 billion price of outflows, the most important weekly internet gross sales since December 2021.

Industrials and client discretionary sectors additionally witnessed notable outflows price $397 million and $367 million, respectively.

World bond funds had been in demand for the tenth week in a row, grossing a internet $17.02 billion in weekly inflows throughout the week.

World short-term bonds drew a internet $6.4 billion, the most important quantity for per week since January 8. Excessive yield bond funds additionally drew a major $3.17 billion in a seventh consecutive week of internet purchases.

Within the commodities section, gold and treasured metals funds obtained $1.22 billion, marking the fourth consecutive weekly influx. Vitality funds, in the meantime, confronted a internet $114 million price of gross sales.

Rising market information for 29,575 funds revealed, fairness funds attracted $1.52 billion, the third successive weekly influx. Buyers additionally added a internet $1.63 billion price of bond funds, extending internet purchases right into a ninth consecutive week.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Modifying by Shreya Biswas)