Global investors reduced their exposure to equities in the week ending November twelfth as concerns over stretched technology valuations and signs of weakening labour conditions in the United States triggered a shift toward lower volatility assets. LSEG Lipper data showed that equity funds drew just over four billion dollars of inflows, down sharply from the previous week’s twenty two billion dollars, underscoring a clear recalibration of risk appetite. A private employment report pointing to job losses in October further contributed to caution, with the absence of official labour data due to an extended government shutdown adding a layer of uncertainty. The slowdown in major technology names, combined with SoftBank Group’s disclosure that it had sold more than five billion dollars worth of Nvidia shares, weighed on sentiment as investors reassessed the sustainability of earnings and valuation multiples within the sector. These developments formed a backdrop in which many allocators preferred to preserve liquidity while waiting for clearer macroeconomic signals.
Regional flows reflected the uneven risk environment as Asian equity funds attracted more than three billion dollars, marking their fifth consecutive week of inflows, while European funds saw nearly two billion dollars in outflows. United States equity funds posted modest net purchases of slightly above one billion dollars. Sector specific allocations showed ongoing interest in technology with inflows of more than two and a half billion dollars, although this was the sector’s weakest figure in a month, suggesting reduced conviction at current valuations. Healthcare funds attracted more than nine hundred million dollars, and industrial funds saw over three hundred million dollars in purchases, indicating rotation into defensive and production linked segments that typically exhibit more resilient performance during periods of economic uncertainty. Investors also pursued diversification across commodity aligned assets as gold and precious metal funds regained demand, generating more than one and a half billion dollars in net inflows after two weeks of outflows. These allocations are consistent with historical patterns in which investors seek hedging instruments during macroeconomic transitions.
Bond markets benefited from a continued preference for stability, drawing inflows for the thirtieth consecutive week with more than thirteen billion dollars allocated to global bond funds. Short term bond strategies recorded a seven week high in demand with nearly six billion dollars invested, highlighting the appeal of duration management amid uncertain rate expectations. Euro denominated bond funds collected more than two billion dollars, and corporate bond funds attracted nearly two billion dollars, showing persistent appetite for yield oriented instruments with relatively predictable risk profiles. Emerging market data covering more than twenty eight thousand funds revealed that equity strategies gained more than two billion dollars for the third straight week, while emerging market bond funds recorded another outflow of more than one billion dollars, a pattern consistent with cautious positioning in regions sensitive to global financial conditions. Overall, the latest flow data illustrates a broad preference for safer assets and balanced allocations as investors navigate an environment shaped by labour market ambiguity, valuation concerns, and shifting expectations around monetary policy.
