UPDATE 1-Stocks see biggest weekly inflow in 18 months - BofA

Reuters · 09/15/2023 08:09
UPDATE 1-Stocks see biggest weekly inflow in 18 months - BofA

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- Global equities saw their biggest weekly inflow in 18 months in the week to Sept. 13 with U.S. and large cap stocks benefiting particularly, Bank of America Global Research said on Friday, pointing to investors' growing confidence about the economy.

Investors poured $25.3 billion into stocks in the week, BofA said, citing EFPR data, the most since March 2022, saying the move came as "confidence in soft landing consensus grows", terminology that typically refers to a gradual economic slowdown, as opposed to a more severe 'hard landing'.

The weekly flow to U.S. equities of $26.4 billion was also the most in 18 months, and the flow to large cap stocks of $18.7 billion was the most since May 2022 - the two sections likely include some overlap.

European equities in contrast saw outflows of $1.4 billion.

A separate BofA survey of fund managers published earlier this week showed investors are becoming more confident about global growth outside China.

The optimism is reflected by gains in share markets since Monday, with the Nasdaq .IXIC and S&P 500 .SPX both up about 1% following a boost on Thursday from hotter than expected U.S. retail sales . .N

Though flow for the week to Wednesday showed some hints that investors have fully recovered their as they pushed a further $28.9 billion into cash in the week to Wednesday.

$1 trillion has been invested in money market funds in 2023 so far, putting it on trackfor a record yearly inflow, according to BofA.

(Reporting by Alun John; editing by Dhara Ranasinghe & Simon Cameron-Moore)