|
The
BAML figures, which track flows through Wednesday, showed
overall equity inflows of $63 billion since Donald Trump's U.S.
presidential election win on Nov. 8, partially reversing the
$151 billion outflows seen from January to October.
The bulk of the latest gains came from an $18.5 billion rush
into U.S. stocks, but European and emerging equity funds also
saw inflows of $700 million and $1 billion respectively, the
data showed.
"Forced buying means the risk rally is broadening; (there are)
rising inflows to laggards," analysts at the bank added.
Materials, financial, energy and industrial firms have seen the
biggest boost since Trump's victory, with ETF holdings of
materials assets up 25 percent and more than a fifth for
financials.
Bond funds, however, saw a $4.4 billion exodus for their longest
losing streak in three years, while gold lost $700 million.
Emerging debt funds lost $1.2 billion for their sixth week of
outflows.
But in line with the enthusiasm for reflation trades, almost $5
billion moved into riskier high-yield bonds - the most in nine
months - while inflation-linked securities, TIPs, received $300
million for their 25th week of inflow out of 27.
BAML said there were still 'winter risk' worries about a
potential sharp fall in China's currency and another spell of
outflows from the world's second-largest economy. The yuan has
hit 8-1/2-year lows to the dollar while local bond yields have
spiked this week.
"Risks of sharper devaluation of China currency plus trade and
geopolitical tensions with the United States are keeping clients
long US and Japan, short Europe & emerging markets and
preventing 'full capitulation' into risk assets," BAML added.
(Reporting by Marc Jones; Editing by Hugh Lawson)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
