Economy May 4, 2026 06:34 AM

Global equity inflows extend to sixth week as earnings beat expectations

Investor optimism on robust corporate profits offsets geopolitical worries and higher oil prices

By Hana Yamamoto
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Global equity funds recorded net inflows for a sixth consecutive week through April 29, driven by strong first-quarter corporate results that lifted the MSCI World Index to a record. Asian markets saw particularly large inflows, while bond funds continued to attract capital and money market funds experienced notable withdrawals.

Global equity inflows extend to sixth week as earnings beat expectations
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Key Points

  • Global equity funds had net inflows for a sixth consecutive week, totaling $18.91 billion for the week through April 29.
  • Asian equity funds recorded a record weekly inflow of $10.82 billion, led by $8.27 billion to Japanese funds and $2.31 billion to South Korean domestic funds; tech sector flows were a major driver.
  • Global bond funds continued to attract capital for a fourth week with $14.19 billion in net inflows, while money market funds saw significant outflows of $36.5 billion.

May 4 - Global equity funds attracted net new money for a sixth straight week through April 29, with investors responding to encouraging first-quarter corporate results even as concerns lingered about the Middle East conflict and rising oil prices.

Data from LSEG Lipper showed global equity funds drew a net $18.91 billion during the week, following a substantially larger $48.67 billion of inflows the prior week. The MSCI World Index reached a record high of 1,084.69 last week after a number of major U.S. technology companies and South Korean chipmaker Samsung Electronics posted strong results.

LSEG coverage of 525 MSCI World constituents indicated that roughly 72% of those companies surpassed analysts' average profit estimates for the first quarter, a statistic market participants cited as a primary driver of the equity flows.

Regional patterns were concentrated in Asia, where equity funds logged a record weekly net inflow of $10.82 billion. That total included $8.27 billion directed to Japanese funds and $2.31 billion into South Korean domestic funds. European equity funds took in $5.83 billion, while U.S. equity funds recorded a more modest weekly net inflow of $911 million.

Sector activity showed a clear tech preference, with the technology sector attracting a net $3.48 billion over the week. That pushed total tech inflows for the month to a net $22.9 billion.

Fixed income also remained in favor. Global bond funds extended their run of inflows to a fourth consecutive week, drawing a net $14.19 billion. Within that category, government bond funds received $3.07 billion - the largest weekly inflow for that group in three weeks - and high-yield bond funds attracted $2.44 billion.

In contrast, money market funds experienced their third straight week of net withdrawals, with investors pulling $36.5 billion. Precious metals-focused commodity funds were also out of favor, as investors redeemed a net $1.46 billion from gold and other precious metals funds, ending a four-week streak of inflows.

Emerging markets displayed mixed flows. Equity funds in emerging markets saw net outflows of $372 million after three weeks of gains, while emerging markets bond funds recorded a net inflow of $999 million, marking a fourth consecutive week of positive flows. The figures reported cover a universe of 28,889 funds.


Data note: Fund flow and performance figures are from LSEG Lipper and reflect activity through April 29 as reported for the week ending that date.

Risks

  • Investor concerns about the Middle East conflict remain a source of geopolitical risk that could alter fund flows and market sentiment - this can particularly affect energy and regional equity exposures.
  • Rising oil prices are noted as a concern; sustained increases could pressure consumer-facing sectors through higher input costs and influence fixed income and equity allocations.
  • A reversal in corporate earnings momentum would likely reduce the current earnings-led bid for equities, impacting tech and other growth-sensitive sectors given their recent inflow concentration.

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