Investors pile into cash, but snap up Chinese stocks in tricky markets

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LONDON : Uncertainty over the economic outlook and the banking sector prompted investors to move money back into cash and gold in the week to Wednesday, according to BofA Global Research.But the current environment is tricky to trade, as evidenced by a push into perceived risky assets such as tech stocks

LONDON : Uncertainty over the economic outlook and the banking sector prompted investors to move money back into cash and gold in the week to Wednesday, according to BofA Global Research.

There were $52.3 billion of inflows to cash funds in the week, a resumption of inflows after one-off outflows a week earlier, and also $200 million of inflows to gold. Meanwhile, in the week to Wedensday there were $6.1 billion of inflows to Chinese equity funds, the most since January 2022, and $1.2 billion of inflows to tech funds, the most since November 2022.

Stronger-than-expected earnings from big tech and growth companies this week including Alphabet Inc, Microsoft Corp and Meta Platforms Inc have supported markets despite jitters in the U.S. banking sector. [.N]

 

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