Mutual fund investors continued to move out of emerging markets and commodities funds into Europe and Japan in the wake of China’s stock market turmoil and a decline in commodities prices, according to EPFR Global Inc. on Thursday. “Over the past three weeks more than $2.5 billion has been redeemed from EPFR Global-tracked Commodities Sector Funds and over $14.5 billion from Emerging Markets Equity Funds in anticipation of tighter U.S. monetary policy,” said EPFR in a statement. Among emerging markets, Russia Equity Funds saw the largest redemption on the back of falling oil prices, economic sanctions by the West and a weak currency. In contrast, Europe, Japan and Global Equity Funds witnessed inflows during the week ended July 29 as investors sought shelter in the event of a Federal Reserve rate hike, according to EPFR.
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