December 24 (Reuters) – Global equity funds posted massive inflows as risk sentiment returned, with investors believing the Omicron variant will not bring a big setback to the global economy next year.

According to data from Refinitiv, investors bought $ 33 billion in global equity funds in the week ending December 22, up from an outflow of $ 13.1 billion the week before.

US equity funds attracted an inflow of $ 27.5 billion, while Asian equity funds took in $ 1.8 billion. In contrast, European equity funds posted an outflow of $ 1.5 billion.

Global stocks saw a strong rally this week, following their downtrend earlier in the month, supported by strong corporate earnings and reporting that Moderna Inc’s (MRNA.O) COVID-19 vaccine provides protection against the Omicron variant

Meanwhile, global bond funds received $ 5.4 billion, after recording cash outflows the week before.

Money market funds, on the other hand, posted an outflow of $ 3.2 billion during the week, underscoring positive risk sentiment.

Among commodities funds, precious metals funds reported net sales of $ 578 million, their third consecutive weekly outing.

An analysis of 24,070 emerging market funds showed bond funds had outflows of $ 89 million, while investors sold equity funds worth $ 1.8 billion.

Report by Patturaja Murugaboopathy in Bengaluru; Editing by Toby Chopra

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