June 21, 2019 / 8:49 AM / 5 months ago

Equity funds suck in biggest inflow in 15 months at $14.4 billion - BAML

An illustration picture shows euro and US dollar banknotes and coins, April 8, 2017. REUTERS/Kai Pfaffenbach/Files

LONDON (Reuters) - Investors ploughed $14.4 billion into equity funds in the week to Wednesday, the biggest inflows in 15 months, Bank of America Merrill Lynch said on Friday, as a dovish turn by major central banks fired up markets.

U.S. equity funds enjoyed biggest inflows in 14 weeks, pulling in $17.8 billion, while Japan stock funds attracted $1.4 billion, the bank said, citing data provider EPFR.

However, Europe stocks fund suffered $3.5 billion of outflows while investors withdrew $1.7 billion from emerging market equities, BAML’s Chief Investment Strategist Michael Hartnett wrote in a note to clients.

Major central banks stepping up efforts to ease and provide stimulus against a backdrop of signs of easing economic growth has boosted markets around the globe this week.

“Markets stop panicking when central banks start panicking,” Hartnett said.

Bond funds also enjoyed inflows, raking in $8.2 billion in a 24th week of inflows. Investment grade bond funds took in $6.6 billion, with high-yield and emerging market debt vehicles attracting small outflows.

Meanwhile Treasury funds suffered their biggest weekly outflows since march at $1.2 billion, BAML said.

The bank’s “Bull & Bear” gauge fell to 2.3 or “neutral” territory, it added.

Reporting by Karin Strohecker, Editing by Abhinav Ramnarayan

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