LONDON Feb 3 International investors pumped
more money into equities, company debt and emerging markets
over the past week in a sign they have yet to lose faith in
"Trumpflation", data from Bank of America Merrill Lynch showed
Expectations of reflationary fiscal policies - dubbed
Trumpflation after new U.S. President Donald Trump - sharply
boosted the dollar after the Nov. 8 elections.
But those gains stalled recently on fears of damage from
Trump's protectionism, immigration curbs and most recently, his
accusations of currency manipulation levelled at China, Germany
And U.S. stocks hit record highs last month but have since
failed to advance since .
BAML, which tracks investment flows for the week through
Wednesday, said that "while price action was showing some Trump
fatigue, post-election flow trends are not showing any major
The bank said bond funds had received $11.5 billion, the
biggest weekly inflow in seven months, while equity inflows of
$12.7 billion were the largest in seven weeks.
All major equity groups took in new money, with U.S. stock
funds receiving $7.8 billion, the biggest weekly total in seven
weeks, while emerging equities took in $1.4 billion, the most
since October 2016, the bank said.
Since the election, flows to U.S. equity funds have exceeded
$65 billion, according to the data.
Within bonds too, investors focused on sectors likely to
benefit from a growth/inflation pickup. Junk bonds for instance
have taken new money for nine of the past 10 weeks, with a $2.2
billion inflow in the latest week, while investment-grade debt
received $5.3 billion, the sixth straight week of inflows.
While government bond funds lost money, TIPS funds, which
invest in inflation-protected securities, saw their eighth
straight week of inflow. Emerging debt also continued to
benefit, receiving $1.7 billion.
(Reporting by Sujata Rao; editing by Mark Heinrich)