(Reuters) – U.S. equity funds saw money outflows for the first time in four weeks in the week to Nov. 9 as investors braced for the midterm elections and the release of a report on U.S. consumer prices, amid concerns over borrowing costs.
According to Refinitiv Lipper data, investors withdrew a net $10.52 billion out of U.S. equity funds in their first weekly net selling since Oct. 12.
GRAPHIC: Fund flows: US equities, bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/znvnbdyayvl/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
Investors withdrew U.S. large-cap funds worth $7.28 billion, the most in eight weeks, while exiting small- and mid-cap equity funds worth about $270 million each.
Among sector funds, tech recorded outflows of $1.52 billion, the highest in 11 weeks, although financials and health care received $441 million and $337 million respectively in inflows.
GRAPHIC: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/byprlozykpe/Fund%20flows%20US%20equity%20sector%20funds.jpg
U.S. stocks rallied on Thursday after U.S. consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months.
Meanwhile, U.S. bond funds saw net selling of $2.61 billion in an eighth straight week of outflows.
U.S. municipal bond funds had $2.67 billion worth of net selling, the biggest outflow in three weeks, although U.S. taxable bond funds received a marginal $43 million in net buying.
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U.S. general domestic taxable fixed income, short/intermediate investment-grade funds and loan participation funds faced outflows of $1.78 billion, $847 million and $603 million respectively, but investors purchased government bond funds of $1.9 billion.
GRAPHIC: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/lbpggrqalpq/Fund%20flows%20US%20bond%20funds.jpg
At the same time, money market funds witnessed net selling worth $15.09 billion, after having obtained $47.86 billion in inflows in the previous week.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Barbara Lewis)