Data from London Stock Exchange Group (LSEG) showed increased inflows into global equity funds last week, signaling improved investor sentiment and a growing appetite for risk assets.
At the same time, money market funds recorded a weekly inflow at record levels, reflecting strong liquidity flows into financial markets despite ongoing global uncertainty.
This divergence between equities and cash highlights a dual strategy among investors—seeking returns while maintaining liquidity as a precaution.
Bond funds showed mixed flows, as markets continue to monitor interest rate expectations and global economic developments.
Overall, the data suggests a gradual recovery in risk appetite, though investors remain cautious with significant allocations to low-risk instruments.