Investors chase risky assets as stimulus measures offset virus worries: BofA

[July 17, 2020]    LONDON (Reuters) - Investors pumped money into riskier bonds and equity funds, BofA's weekly fund flow statistics showed on Friday, as unprecedented stimulus measures helped offset worries about rising COVID-19 case numbers in the United States.

The City of London financial district can be seen, whilst British stocks tumble as investors fear that the coronavirus outbreak could stall the global economy, in London, Britain, March 9 2020. REUTERS/Henry Nicholls

The policy support encouraged investors to pour money into riskier debt instruments, with emerging market debt seeing inflows of $1.9 billion, the largest in five weeks, while safe-haven government bond funds saw $3 billion outflows.

The investment bank said that in the week to July 15, $9.3 billion went into bond funds while $4.8 billion was channelled into equity funds. World stocks are just 6% away from touching fresh record highs.

Investors meanwhile withdrew $77.9 billion from money market funds, BofA said, noting that the latest week included a July 15 tax deadline in the United States.

(Reporting by Thyagaraju Adinarayan; Editing by Hugh Lawson)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.