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:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

NYSE to delist three Chinese telecoms in dizzying about-face
Business

NYSE to delist three Chinese telecoms in dizzying about-face

By John McCrank and Anirban Sen (Reuters) -The New York Stock Exchange said on Wednesday it will delist three Chinese telecom companies, confirming its latest reversal on the matter a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings

Oil and gas dealmaking peaks in Q4 as pandemic spurs consolidation - Enverus
Business

Oil and gas dealmaking peaks in Q4 as pandemic spurs consolidation - Enverus

(Reuters) - Deal making among oil and gas producers was at its highest for the year in the fourth quarter of 2020 as the pandemic-driven fallout in commodity prices spurred a wave of consolidation between explorers looking to scale up and drive down costs, a report from analytics firm Enverus said. Oil and gas producers made deals worth $27.1 billion in the quarter, up from $21 billion in the third, helped by three multi-billion dollar acquisitions in the prolific Permian basin of West Texas and New Mexico. ConocoPhillips acquired Concho Resources for $13.3 billion, the biggest pure shale acquisition by any company since 2011, topping the list.

Markets shift to price in chance of Democratic Senate wins
Business

Markets shift to price in chance of Democratic Senate wins

By Ritvik Carvalho, Wayne Cole and David Randall NEW YORK/LONDON/SYDNEY (Reuters) - The growing chances of Democratic wins in two pivotal U.S. Senate contests triggered financial market moves Wednesday that mirror hopes of more COVID-19-related stimulus and increased regulatory scrutiny of tech companies