Bank of America Global Research reported that investors “shunned” UK stocks after 24 weeks of outflows and bought bonds.
BofA reported, citing EPFR data, that global bond funds saw $5.4 billion in inflows, gold funds had $1 billion in outflows, and equities funds lost $5 billion.
BofA said UK equities funds have been “shunned” this year, with 24 weeks of withdrawals and just one week of inflows.
After Wednesday’s inflation results revealed inflation is sticking around, the Bank of England (BoE) hiked interest rates on Thursday.
This week, the cost of living issue and mortgage instability raises the possibility of a UK recession later this year.
BofA reports only seven weeks of inflows into UK shares in 18 months. In the week to Wednesday, investors also withdrew $13.9 billion from money market funds.
BofA reported 12 weeks of investment-grade bond inflows, the longest streak since October 2021.
Tech equities lost $2 billion, while financials gained $1 billion.
BofA’s bull-bear indicator, which measures market sentiment, fell to 3.4 from 3.6, its lowest since early May.
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