Global equity funds faced a second straight week of outflows in the week to July 6, as investors remained concerned about a global economic slowdown and recession risks due to interest rate hikes by major central banks.
According to Refinitiv Lipper, investors withdrew a net $7.74 billion out of global equity funds. That compares with outflows of $8.92 billion in the previous week.
Data showed U.S. manufacturing activity slowed more than expected in June, while the euro zone's business growth also moderated.
"A US recession starting this Q4 is our new base case. We also expect recessions across the euro area, UK, Japan and other smaller economies," Nomura said in a note on Friday.
"This synchronised global growth downturn would slow G3 GDP growth to -0.8% y-o-y in 2023 from 2.0% in 2022."
U.S. and European equity funds recorded net selling of $5.11 billion and $4.89 billion respectively, although investors purchased Asian funds worth a net $1.05 billion.
Reuters
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