U.S. stocks suffered $8.9 billion outflow as Trump storm built | Reuters

By Karin Strohecker | LONDON LONDON Investors ditched almost $9 billion of U.S. equities as political turmoil in Washington built up in the past week, Bank of America Merrill Lynch figures showed on Friday.Funds invested in U.S.

Reuters May 19, 2017 23:00:07 IST
U.S. stocks suffered $8.9 billion outflow as Trump storm built
| Reuters

US stocks suffered 89 billion outflow as Trump storm built
 Reuters

By Karin Strohecker
| LONDON

LONDON Investors ditched almost $9 billion of U.S. equities as political turmoil in Washington built up in the past week, Bank of America Merrill Lynch figures showed on Friday.Funds invested in U.S. equities saw outflows of $8.9 billion in the week to Wednesday - their third straight week of outflows -- while those dedicated to European stocks added $1.1 billion, the largest in 39 weeks and the ninth straight week of inflows."D.C. disruption: new risk ... Washington political malaise causes capital flight from U.S.," BAML summarised, referring to White House battles over the struggles over alleged links to Russia and to the removal of the FBI director.The big winner for the week, meanwhile, were global tech stocks, now enjoying the biggest annualised inflows since the dot-com bubble.

Tech stocks raked in $1 billion in the week to Wednesday in their 11th straight week of inflows, BAML said in its regular 'Flow Show' analysis.It also noted that the Nasdaq internet index, a modified market capitalisation-weighted index designed to track the largest and most liquid U.S. online firms, was running at an annual rate of 75 percent gains year to date.It expressed some concern about this.

"(The) longer it takes the economy and yields to pick-up, greater (the) risk of tech mania," BAML said.Investors also remained in emerging markets, with equities adding $3.9 billion in a ninth week of gains while developing market debt saw inflows of $1.6 billion in their 16th straight positive week.

"Emerging markets equal year-to-date flow winner and year-to-date return winner as weaker dollar, lower yields overwhelm China credit fears," BAML said in its note. The data, however, was collected before a broad sell of roiled emerging markets on Thursday following allegations that Brazil's President Michel Temer condoned bribes to silence a key witness in a corruption probe.Overall, bond funds attracted $9.7 billion of inflows in the week to Wednesday, with around two thirds of that ($6.6 billion) going into investment grade funds, BAML said. (Editing by Jeremy Gaunt)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.