Investors keep out of European stocks, flock to U.S., Bank of America says

Bull and bear symbols for profitable and dangerous buying and selling are seen in entrance of the German inventory trade (Deutsche Boerse) in Frankfurt, Germany, February 12, 2019. REUTERS/Kai Pfaffenbach

LONDON, March 18 (Reuters) – Traders pulled cash out of European equities for a fifth week in a row and flocked to U.S. equities because the Russian invasion of Ukraine weighed on the continent’s bourses, BofA wrote on Friday in its weekly report primarily based on EPFR knowledge.

Flows out of European fairness funds amounted to three.2 billion {dollars} whereas $32 billion went into U.S. equities, the biggest quantity in 5 weeks, the U.S. funding financial institution stated.

Whereas central banks throughout the globe have embarked in tightening financial insurance policies, $14.9 billion had been taken out of bonds, the biggest outflow since March 2021.

“‘Inflation shock not over, ‘charges shock’ not over, ‘recession shock’ possible second half of 2022”, the financial institution’s analysts wrote in a weekly be aware.

Rising market debt funds additionally noticed outflows for the tenth consecutive week. About $14.3 billion has left such funds to date this 12 months, almost half the quantity that went into such funds in 2021.

The U.S. funding financial institution’s Bull and Bear indicator, a market sign that mixes numerous knowledge and suggests when to purchase or promote shares, ticked decrease to 2.3 within the newest week. A studying under 2 is taken into account as a “purchase sign”.

Reporting by Julien Ponthus; Modifying by Saikat Chatterjee

: The Thomson Reuters Trust Principles.