02/11/2019
Analysts of the Bank of America Merrill Lynch said that the market capitalization of global stocks at the present time of 85.5 trillion dollars, near its highest level ever.
According to "Reuters," global equity funds have seen their first inflows in six weeks after the largest wave of European buying in more than two and a half years, and in nine months in emerging markets.
Based on figures from a company that tracks financial market flows, the bank said investors had injected $ 6.1 billion into equity funds, with $ 7.1 billion in Exchange-traded funds offset the slight impact of exits from $ 1 billion mutual funds.
Europe saw $ 1.3 billion inflows, the largest in 87 weeks. Emerging-market funds saw an increase of $ 1.4 billion, while the United States and Japan gained $ 1 billion and $ 900 million respectively.
Analysts said that this points to "a divergence in the demand for non-US stocks," noting that "the bond bubble has turned towards stocks." And the flow of a total of $ 7.8 billion also to bond funds last week.
Furthermore, The Institute of International Finance, states that portfolio flows to emerging markets slowed to $ 22.5 billion in October (last October), while investors continued to be affected by Blur related trade tensions between China and the United States.
He said, "We believe that the prospects for equity flows to emerging markets other than China remain difficult in light of the large amounts of hot money that went to emerging markets already in the past few years."
Emerging markets attracted portfolio flows of $ 37.7 billion in September, with debt accounting for the bulk of that value.
