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US stocks suffered $8.9 bn outflow as Trump stirs trouble in White House

US President stoked controversy last week over his alleged links to Russia

Reuters  |  LONDON 

US markets, S&P, Nasdaq
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York. (Photo: Reuters)

Investors ditched almost $9 billion of US equities as political turmoil in Washington built up in the past week, Bank of America Merrill Lynch figures showed on Friday.

Funds invested in US equities saw outflows of $8.9 billion in the week to Wednesday- their third straight week of outflows -- while those dedicated to European stocks added $1.1 billion, the largest in 39 weeks and the ninth straight week of inflows.

"Washington DC disruption: new risk ... Washington political malaise causes capital flight from US," BAML summarised, referring to battles over the struggles over alleged links to and to the removal of the director.

The big winner for the week, meanwhile, were global tech stocks, now enjoying the biggest annualised inflows since the dot-com bubble.

Tech stocks raked in $1 billion in the week to Wednesday in their 11th straight week of inflows, BAML said in its regular 'Flow Show' analysis.

It also noted that the Nasdaq internet index, a modified market capitalisation-weighted index designed to track the largest and most liquid US online firms, was running at an annual rate of 75 per cent gains year to date.

It expressed some concern about this.

"(The) longer it takes the economy and yields to pick-up, greater (the) risk of tech mania," BAML said.

Investors also remained in emerging markets, with equities adding $3.9 billion in a ninth week of gains while developing market debt saw inflows of $1.6 billion in their 16th straight positive week.

"Emerging equal year-to-date flow winner and year-to-date return winner as weaker dollar, lower yields overwhelm China credit fears," BAML said in its note.

The data, however, was collected before a broad sell of roiled emerging on Thursday following allegations that Brazil's President Michel Temer condoned bribes to silence a key witness in a corruption probe.

Overall, bond funds attracted $9.7 billion of inflows in the week to Wednesday, with around two thirds of that ($6.6 billion) going into investment grade funds, BAML said.

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US stocks suffered $8.9 bn outflow as Trump stirs trouble in White House

US President stoked controversy last week over his alleged links to Russia

US President stoked controversy last week over his alleged links to Russia
Investors ditched almost $9 billion of US equities as political turmoil in Washington built up in the past week, Bank of America Merrill Lynch figures showed on Friday.

Funds invested in US equities saw outflows of $8.9 billion in the week to Wednesday- their third straight week of outflows -- while those dedicated to European stocks added $1.1 billion, the largest in 39 weeks and the ninth straight week of inflows.

"Washington DC disruption: new risk ... Washington political malaise causes capital flight from US," BAML summarised, referring to battles over the struggles over alleged links to and to the removal of the director.

The big winner for the week, meanwhile, were global tech stocks, now enjoying the biggest annualised inflows since the dot-com bubble.

Tech stocks raked in $1 billion in the week to Wednesday in their 11th straight week of inflows, BAML said in its regular 'Flow Show' analysis.

It also noted that the Nasdaq internet index, a modified market capitalisation-weighted index designed to track the largest and most liquid US online firms, was running at an annual rate of 75 per cent gains year to date.

It expressed some concern about this.

"(The) longer it takes the economy and yields to pick-up, greater (the) risk of tech mania," BAML said.

Investors also remained in emerging markets, with equities adding $3.9 billion in a ninth week of gains while developing market debt saw inflows of $1.6 billion in their 16th straight positive week.

"Emerging equal year-to-date flow winner and year-to-date return winner as weaker dollar, lower yields overwhelm China credit fears," BAML said in its note.

The data, however, was collected before a broad sell of roiled emerging on Thursday following allegations that Brazil's President Michel Temer condoned bribes to silence a key witness in a corruption probe.

Overall, bond funds attracted $9.7 billion of inflows in the week to Wednesday, with around two thirds of that ($6.6 billion) going into investment grade funds, BAML said.
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Business Standard
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US stocks suffered $8.9 bn outflow as Trump stirs trouble in White House

US President stoked controversy last week over his alleged links to Russia

Investors ditched almost $9 billion of US equities as political turmoil in Washington built up in the past week, Bank of America Merrill Lynch figures showed on Friday.

Funds invested in US equities saw outflows of $8.9 billion in the week to Wednesday- their third straight week of outflows -- while those dedicated to European stocks added $1.1 billion, the largest in 39 weeks and the ninth straight week of inflows.

"Washington DC disruption: new risk ... Washington political malaise causes capital flight from US," BAML summarised, referring to battles over the struggles over alleged links to and to the removal of the director.

The big winner for the week, meanwhile, were global tech stocks, now enjoying the biggest annualised inflows since the dot-com bubble.

Tech stocks raked in $1 billion in the week to Wednesday in their 11th straight week of inflows, BAML said in its regular 'Flow Show' analysis.

It also noted that the Nasdaq internet index, a modified market capitalisation-weighted index designed to track the largest and most liquid US online firms, was running at an annual rate of 75 per cent gains year to date.

It expressed some concern about this.

"(The) longer it takes the economy and yields to pick-up, greater (the) risk of tech mania," BAML said.

Investors also remained in emerging markets, with equities adding $3.9 billion in a ninth week of gains while developing market debt saw inflows of $1.6 billion in their 16th straight positive week.

"Emerging equal year-to-date flow winner and year-to-date return winner as weaker dollar, lower yields overwhelm China credit fears," BAML said in its note.

The data, however, was collected before a broad sell of roiled emerging on Thursday following allegations that Brazil's President Michel Temer condoned bribes to silence a key witness in a corruption probe.

Overall, bond funds attracted $9.7 billion of inflows in the week to Wednesday, with around two thirds of that ($6.6 billion) going into investment grade funds, BAML said.

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Business Standard
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