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Optimism about US job market and European stimulus boosts Equity Fund flows in early June
Flows into EPFR-tracked Equity Funds hit a two-month high during the week ending June 10 while Money Market Funds posted consecutive outflows for the first time since mid-February as investors responded to positive news on both sides on the Atlantic and moved further off the sidelines.
In the US the pace of unemployment claims continues to slow, and May’s job report showed a surprising – albeit modest – rebound in job creation, while Germany’s recently announced $1.5 trillion stimulus packages has boosted hopes that European policymakers will find common ground in combating the economic effects of the current pandemic. Europe Equity Funds posted their biggest inflow since mid-1Q18 and Europe Bond Funds set a new inflow record while both US Equity and Bond Funds chalked up solid inflows.
Investors continue to take a redeem-and-see approach to the tensions surrounding China’s trade disputes with the US and its more assertive approach towards Hong Kong. China Equity Funds extended their longest run of outflows since 3Q17 while redemptions from Hong Kong Equity Funds climbed to a 45-week high.