(Reuters) -Global equity funds came under selling pressure while safe-haven demand bolstered money market funds in the week through August 6, as U.S. tariff announcements and data showing signs of weakness in the U.S. economy fuelled risk aversion.
Investors sold off a net $7.82 billion worth of global equity funds during the week, adding to $29.95 billion worth of net divestments the week before, LSEG Lipper data showed.
They snapped up money market funds to the tune of $135.37 billion, in their most robust weekly net purchase since January 8.
Fund investors rushed to lock in profits from a recent rally after U.S. President Donald Trump announced steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan. A disappointing U.S. jobs report for July added to investor caution.
A total of $13.7 billion of weekly net sales for U.S. equity funds outweighed inflows in European and Asian equity funds totalling $3.45 billion and $1.85 billion respectively.
Sectoral funds also bucked the trend, with communication services, industrial and tech sector funds luring in a significant $1.18 billion, $822 million and $541 million, respectively.
Global bond funds attracted $20.98 billion worth of net investments, the largest weekly inflow since May 21.
A third of these purchases were in short-term bond funds, which drew $7.29 billion, the largest weekly net investment since April 9. Euro-denominated bond funds and high yield bond funds also saw a hefty $3.5 billion and $2.48 billion worth of net buying.
Demand for gold and precious metals commodity funds eased to an 11-week low, as these funds saw just a $2.79 billion weekly net inflow.
Emerging markets had a mixed week, as investors added bond funds for a third successive week to the tune of $2.24 billion, but ditched a net $2.76 billion worth of equity funds, combined data from 29,727 funds showed.
(Reporting by Gaurav Dogra; Editing by Andrew Heavens)
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