Global Equity Funds Draw Fourth Weekly Inflow Amid Fed Cut Hopes

Global equity funds recorded net inflows for the fourth consecutive week—around $2.17 billion in the week through October 15—as investors ramped up expectations for a rate cut by the Federal Reserve.

What’s Driving It

Dovish comments from Fed Chair Jerome Powell reinforced the market view that monetary easing is on the way, prompting fresh allocations into equities. U.S. and Asian equity funds each attracted nearly $1 billion in inflows, while European funds saw an outflow of $1.62 billion—ending a ten-week streak of inflows.

Sector-specific funds were especially popular, drawing about $6.61 billion, a nearly 50 % increase from the prior week. Tech and healthcare led with roughly $1.91 billion and $1.38 billion respectively.

What It Means for Markets

• The sustained inflows signal that investors are betting on a favourable backdrop for equities, underpinned by future rate cuts and easing inflation risks.

• The divergence between regions—strong U.S./Asia flows vs European outflows—highlights regional differences in growth and policy outlook.

• Key watch-points going forward: how long the inflow streak holds, whether sector rotation intensifies, and how inflows into bonds and precious metals behave.

Outlook

With rate-cut expectations rising, equities are likely to be a primary beneficiary in the near term—provided macro data and policy signals remain aligned. Should inflation or labour market surprises emerge, the mood could quickly shift.