EM currencies and stocks have lost their shine of late, courtesy of the increased prospects of aggressive Fed tightening, rising bond yields in the US and growing trade tensions.
For instance, the emerging stock funds witnessed outflow of $870 million in the week ended May 9 - the biggest since November 2016, according to Research service Lipper.
Key points (Sourcee: Reuters)
- U.S.-based stock funds post $231 mln outflows in week ended Wednesday; 1st withdrawals in 5 weeks
- U.S.-based taxable bond funds attract $86 mln over weekly period; 9th straight week of inflows
- U.S.-based money market funds attract $8.2 bln over weekly period; largest inflows since March
- U.S.-based domestic-focused stock funds attract $566 mln over weekly period, shrinking from $1.3 bln inflows the prior week
- U.S.-based non-domestic-focused stock funds post $796 mln outflows over weekly period; largest withdrawals since December
- U.S.-based high-yield bond funds post $755 mln outflows over weekly period, reversing $526 mln inflows the week prior
- U.S.-based emerging markets equity funds post $870 mln outflows over weekly period; largest withdrawals since November 2016
- U.S.-based emerging markets debt funds post $255 mln outflows over weekly period; 3rd straight week of withdrawals
- U.S.-based European stock funds post $811 mln outflows over weekly period, after $27 mln inflows the week prior
- U.S.-based corporate investment-grade bond funds attract $804 mln over weekly period; 9th straight week of inflows
- U.S.-based government-treasury funds attract $472 mln over weekly period; 6th straight week of inflows
- U.S.-based short-term corporate bond funds attract $1.1 bln in weekly period; largest inflows since September 2017
- U.S.-based commodities precious metals funds post $161 mln outflows over weekly period, after 5 straight weeks of inflows
- U.S.-based stock mutual funds post $1.6 bln outflows; stock ETFs attract $1.3 bln over weekly period
- U.S.-based taxable bond mutual funds post $78 mln outflows; taxable bond etfs attract $164 mln over weekly period
- U.S.-based financial/banking sector stock funds post $583 mln outflows over weekly period; 3rd straight week of withdrawals
- U.S.-based real estate sector stock funds post $410 mln outflows over weekly period; 3rd straight week of withdrawals
- U.S.-based growth and value small cap funds attract $1.2 bln in latest week; 5th straight week of inflows
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