Stocks Flows Have First Two-Week Gain in 21 Months: EPFRLeslie Picker
Investors added to stock funds for a second week, the first back-to-back increase since April 2011, amid rising investor confidence about emerging economies and a global rally in equities.
About $7.2 billion flowed into stock funds around the world in the week ending Jan. 16, according to data compiled by research firm EPFR Global, which began analyzing the data starting in 1996. Deposits into equity funds exceeded bond funds for a fifth week as the MSCI World Index climbed to the highest level in 20 months.
Signs of strengthening global growth and better-than-estimated corporate earnings are helping lure investors back to equities after they withdrew funds since the financial crisis. Emerging-market equity funds took in more money than their developed-market counterparts for the sixth time in the last seven weeks, based on data from EPFR.
China’s economic growth accelerated for the first time in two years during the fourth quarter, a report from the National Bureau of Statistics said today. Investors added more than $10 billion to Chinese equity funds during the week, bringing its streak of deposits to 19 weeks, EPFR data show.