(Adds additional flows, global stock market performance)
NEW YORK, Sept 13 Investors worldwide poured a
net $14.3 billion into stock funds in the latest week amid
strong global economic data and reduced fears of a U.S. strike
on Syria, data from a Bank of America Merrill Lynch Global
Research report showed Friday.
The flows into stock funds in the week to Sept. 11 were the
largest in two months, according to the report, which also cited
data from fund-tracker EPFR Global. The inflows were also the
first in four weeks and reversed outflows of $11.4 billion from
the funds the previous week.
Data showing growth in the U.S. services sector and positive
Chinese economic data helped lift global stocks over the
reporting period, while the likelihood fell of a U.S. military
strike on Syria.
Over the week, a resolution authorizing military strikes
against Syria in retaliation for an alleged chemical weapons
attack against its civilians appeared less likely to pass the
U.S. legislature. Diplomatic efforts to allow Syria to surrender
its chemical weapons, averting a U.S. strike, also calmed
Inflows of $12 billion into stock exchange-traded funds
accounted for most of the inflows into stock funds in the latest
week. ETFs are generally believed to represent the investment
behavior of institutional investors, while mutual funds are
thought to represent the retail investor.
U.S. stock funds attracted $5.9 billion in new cash, the
first inflows in five weeks. The S&P 500 .SPX stock index rose
2.2 percent over the period.
Emerging market stock funds attracted $2.6 billion, marking
the biggest inflows into the funds in seven months, according to
the report, which also cited data from fund-tracker EPFR Global.
The MSCI emerging equities index .MSCIEF rose 5.8 percent over
Japanese stock funds pulled in $1.1 billion, marking the
largest inflows into the funds in four months, the report said.
Japan's Nikkei average .N225 hit a five-week high of 14,238.42
on Sept. 9 after Tokyo won its bid to host the 2020 Olympics and
got an upgrade of second-quarter economic growth
European stock funds worldwide also had inflows of $2.2
billion, marking the 11th straight week of new demand for the
funds and up from inflows of $800 million the prior week. The
FTSEurofirst 300 index .FTEU3 of top European shares rose 2.7
percent over the reporting period.
Globally, bond funds, had outflows of $3.5 billion, up from
the prior week's outflows of $300 million and marking the
seventh straight week of outflows from the funds.
The yield on benchmark 10-year U.S. Treasury notes remained
high and ended the week at 2.91 percent. The yield on the
safe-haven bond briefly rose above 3 percent on Sept. 5, a level
not seen since July 2011. Bond yields move inversely to their
Precious metals funds had inflows of $100 million, marking
the fourth straight week of new demand for the funds.
Positive economic data, uncertainty over whether the Fed
would scale back its stimulus, and reduced tensions over Syria
whipsawed the price of spot gold XAU= over the latest week,
causing it to touch a three-week low of $1,356.85. on Sept. 11.
(Reporting by Sam Forgione; Editing by James Dalgleish and W
Keywords: INVESTING FUNDFLOWS/BOFA
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