Feds stance helps risk appetite return

Popularity of emerging markets equity and bond funds surged last week after the Federal Reserve in the US signalled it would keep interest rates at rock-bottom for another three years.

Feds stance helps risk appetite return

|

Inflows into EPFR Global-tracked EM funds were at their highest levels since Q2 last year and financial sector funds saw their biggest weekly inflows since the fourth quarter of 2010.

Overall, EPFR Global-tracked equity funds absorbed $8.62bn in the week to 25 January, with emerging markets representing nearly a half of that total.

Meanwhile, bond funds took in $6.08bn and money market funds saw outflows of $7bn, another indication risk appetite is returning to markets.

This was also shown by the lowest level of redemptions from equity funds in over six months.

MORE ARTICLES ON