Investors pile billions into bonds, pull from U.S., European stocks: BAML

A trader works on the floor of the NYSE in New York
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 8, 2019. REUTERS/Brendan McDermid

February 1, 2019

LONDON (Reuters) – Investors piled into bonds in the past week and pulled billions of dollars from U.S. and European stocks as they sought safety in assets seen as less risky in times of economic uncertainty, Bank of America Merrill Lynch (BAML) said on Friday.

The bank’s report, based on EPFR data which tracks fund flows from Wednesday to Wednesday, showed investors yanked $15 billion from equities in the week to Jan. 30, the tenth outflow of the past 11 weeks.

Some $15.2 billion was pulled from U.S. stocks and $3.7 billion from Europe, marking the 46th weekly outflow of the past 47 weeks from the region.

Japan and emerging market equities continued to see inflows, with $4.4 billion and $1.3 billion respectively.

In turn, bonds recorded inflows of $9.4 billion, their biggest since January last year. Investors pumped $4.7 billion into investment-grade bonds, the most since February last year, the data showed.

(Reporting by Josephine Mason, Editing by Helen Reid)

Source link