U.S. Stock Market Outflows Continue
According to Bank of America (BoFA), citing EPFR data, U.S. equities saw $9.3 billion in outflows in the week ending Wednesday. This marks the largest 4-week outflow since May 2023, as investors continue pulling money out of the U.S. stock market.
Europe and Japan Stocks Attract Investors
In contrast, Japan and European stocks saw inflows for the fourth week in a row, showing growing investor confidence in these markets. However, emerging market (EM) stocks faced outflows for the second straight week.
Big Inflows Into Cash and Crypto
Investors moved a large amount of money into cash, with $51.9 billion in inflows — the biggest in 9 weeks.
At the same time, cryptocurrencies saw their largest 4-week inflow in 3 months, showing renewed interest in digital assets.
Bond Markets See Strong Demand
Global bond markets also gained, with $14.1 billion flowing into bonds in the same week.
Emerging Market Portfolios Face Pressure
According to the Institute of International Finance (IIF), non-resident investors pulled money out of emerging markets in April, resulting in a net outflow of $0.2 billion from these portfolios.
China Sees Strong Inflows in Debt, But Equity Struggles
Chinese debt portfolios attracted $10.6 billion in non-resident inflows.
However, equity portfolios outside of China in emerging markets recorded seven consecutive months of outflows, indicating continued caution among foreign investors.
Summary
U.S. stocks face biggest 4-week outflows since May 2023
Europe and Japan stocks see 4th week of inflows
Cash inflows hit 9-week high
Crypto sees biggest inflow in 3 months
Bonds gain $14.1 billion
Emerging markets see $0.2 billion net outflow in April
China’s debt attracts foreign inflows, while EM equities (excluding China) continue to lose investors
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