Global money market funds draw huge inflows on caution over potential tariffs

Bengaluru: So, it looks like investors are really diving into global money market funds lately. In just one week, they put in a whopping $158.73 billion! This surge is mainly because folks are worried about potential tariff hikes with the new U.S. administration coming in. Plus, there’s a big jobs report on the horizon that could change how everyone feels about Federal Reserve rate cuts.

Interestingly, this is the second-largest weekly net purchase since April 2020. With President-elect Donald Trump about to take office, he’s already talking about a 10% tariff on all imports and a hefty 25% on goods from Canada and Mexico right off the bat. That’s got people on edge!

On the flip side, global equity funds are also doing well, pulling in $11.36 billion for the third week in a row. European equity funds are seeing the biggest inflow in three weeks, with $8.7 billion coming in. Meanwhile, Asian funds gained $5.6 billion, but U.S. funds lost about $5.05 billion during the same time.

In the tech sector, investors are finally back in after five weeks of selling, putting in $1.13 billion. And while global bond funds are also seeing some action with $19.5 billion in inflows, commodity funds are struggling a bit, with $293 million pulled out from gold and precious metals.

Emerging market funds are a mixed bag. Bond funds are finally seeing some love with $2.38 billion in net inflows, but equity funds are taking a hit, losing $973 billion this week. It’s a wild ride out there in the markets!