Rate rise fears prompt third week of global equity funds outflows

Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 6, 2022. REUTERS/Brendan McDermid

(Reuters) - Global equity funds remained out of favour in the seven days to Sept. 7 as a strong U.S. services industry report fuelled concerns that the Federal Reserve would keep hiking interest rates to tame inflation.

Some investors had expected that the Fed might temper its rate hikes to avert a slowdown in the economy, which in turn would boost risk assets.

Another bearish factor for equities was a deepening of Europe's energy crisis after Russia said one of its main gas supply pipelines to the West would stay shut indefinitely, stoking renewed fears about shortages.

Investors dumped global equity funds worth a net $23.99 billion after ditching $31.73 billion worth of funds in the previous week, data from Refinitiv Lipper showed.

GRAPHIC: Fund flows: Global equities bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkrnazvx/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg