According to the Financial Intelligence Network, global investors heavily invested in money market funds in the week ending October 9, as expectations of a rate cut by the Federal Reserve fell and caution remained over the Middle East conflict. Investors also put funds into highly liquid money market funds, awaiting the Chinese government's eagerly anticipated latest stimulus measures to be announced this weekend. According to LSEG data, global money market funds saw a net inflow of $24.55 billion this week, compared to a net inflow of around $22.78 billion the previous week.

After the release of the stronger-than-expected US non-farm payroll report last week, investors adjusted their views on the future rate cuts by the Federal Reserve, boosting demand for low-risk assets. Asia saw a $12.88 billion inflow into money market funds, the highest level since January 10. Funds in Europe and the USA also saw net purchases of $7.78 billion and $25.4 billion, respectively.

However, demand for higher-risk equity funds cooled down, with investors buying only $3.65 billion in global equity funds, compared to a net purchase of $35.97 billion the previous week.

Technology, financial, metal, and mining industry funds received significant capital inflows of $0.572 billion, $0.417 billion, and $14.8 billion, respectively, whereas the net sales of medical care industry funds amounted to $0.52 billion.

Haiwaizhongguo equity fund attracted a huge amount of $8.52 billion in funds, the largest weekly fund inflow since at least December 2020.

Global bond funds have attracted investments for the 42nd consecutive week, investors injected $12.43 billion into these funds. Investors net bought $2.16 billion in short-term bond funds, compared to net selling of $3.3 billion a week ago. Meanwhile, government funds, high-yield funds, and loan participation funds net inflows were $1.96 billion, $0.906 billion, and $7.37 billion respectively.

Gold and other precious metals funds have remained attractive for the ninth consecutive week, attracting approximately $0.78 billion in inflows. However, energy funds saw an outflow of $11 million.

Data covering 29,545 emerging markets funds shows that equity funds attracted a massive $8.55 billion in funds, the largest amount since January 2021. Investors also purchased $1.76 billion in bond funds.