(Reuters) – Global equity funds faced large capital outflows in the week to June 9, as investors wary of U.S. inflation data frightened by fears that a surprise on the upside could prompt the Federal Reserve to start cutting its massive stimulus measures.

According to data from Refinitiv Lipper, global equity funds faced net outflows of $ 12.8 billion, the largest since the week ended April 28.

Chart: Fund flow to global equity bonds and money markets –

However, the outflows were mostly concentrated in US equity funds, which recorded net sales of $ 17.5 billion, while equity funds in Europe and Asia got 4.2 respectively. and $ 1.9 billion in fundraising.

Data released Thursday showed consumer prices in the United States rose sharply in May, resulting in the largest annual increase in 13 years.

However, the jump was not seen as enough to change the Federal Reserve’s view that the rise in consumer prices will be transient or change its accommodative monetary policy.

Chart: Global funds flock to equity sectors –

Investors sold $ 575 million in consumer discretionary funds and $ 288 million in utilities funds. Tech funds faced their first outing in three weeks, the data showed.

However, financial sector funds recorded net purchases worth $ 1.5 billion, marking their second consecutive week of influx.

In Asia, South Korean equity funds faced outflows of $ 2.2 billion, fearing its central bank would tighten monetary policy sooner than expected.

Meanwhile, global bond funds attracted $ 12.2 billion in net purchases, despite concerns about higher inflation levels.

Global money market funds also recorded purchases with a net worth of $ 8.1 billion, recording entries for the fifth week in a row.

Global bond fund flows for the week ended June 9

Among commodities, investors bought $ 281 million worth of precious metals funds, representing a fifth straight week of entries, while energy funds had exits worth $ 250 million.

An analysis of 23,721 emerging market funds showed that equity funds had outflows worth $ 207 million, while bond funds attracted $ 1.2 billion, marking a second consecutive week of ‘inputs.

Chart: Fund flow to emerging market equities and bonds –