Global Equity Funds Saw Biggest Ever Weekly Inflows On Vaccine, US Election News

In the week to Wednesday, global equity funds took in $44.5 billion, the biggest ever on record, after the news on US election outcome and Pfizer's vaccine progress, BofA (Bank of America) Research said on Friday.

Citing data from EPFR, the bank said US equity funds had enjoyed $32.5 billion in inflows, their second-biggest ever, while emerging market equities took in $6.5 billion for their fifth-highest inflow.

On Monday world stocks hit record highs, after the weekend victory of Joe Biden followed by Pfizer's statement of 90% success in the third trial of its COVID-19 vaccine.

The risk-on move prompted investors to pull $17.8 billion out of cash while US Treasury funds saw $4 billion in redemptions, the biggest in six months.

BofA also said that its proprietary Bull-Bear indicator, a proxy for risk sentiment, had risen to 4.2 from 3.8 the previous week) though it remained "far from dangerous euphoria".

But it highlighted that 91% of MSCI country-level indexes were now above the 50-day and 200-day moving averages- key technical levels- which it said was an "early warning signal equity that topping process has begun".