LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » World News

Equity, bond buying buoyant, but clock ticking for rally, BAML says

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Fri, Jul 28, 2017
05:39 pm
Reuters

Money has flowed into emerging-market bond funds for six straight months and global equity funds attracted another $10 billion last week, Bank of America Merrill Lynch said, as it gave its latest warning that the rally looks set to end.

BAML`s analysts said in their weekly "Flow Show" roundup of capital movements that their "Bull & Bear" market temperature gauge was nearing the red zone and that asset prices would top out in the coming months.

But for now it has been "another `risk-on` week: $9.9 billion flowing into equities, $6.6 billion into bonds, $0.6 billion out of gold," BAML`s analysts said in the note published late on Thursday to its clients and to media on Friday.

A breakdown of the numbers, which are measured from Wednesday to Wednesday, showed inflows into emerging-market debt funds for 26 straight weeks and into emerging-stock stocks funds for 19.

And while U.S equity funds saw a sixth week of outflows, European stocks funds gained for 17 of the past 18 weeks and Japanese stock funds for six of the past seven weeks.

By style, U.S. "value" funds have seen outflows 13 of the past 14 weeks ($1.5 billion this week), big outflows from U.S. growth funds ($3.1 billion this week) and the largest outflows from U.S. small caps in three weeks ($1.2 billion this week).

By sector for the week, there were inflows to financials ($1.3 billion), tech ($0.4 billion), consumer ($42 million); outflows from materials ($0.3 billion), energy ($0.6 billion, the largest in 16 weeks), utilities ($0.2 billion) healthcare ($26 million) and real estate ($0.5 billion).

"We have pencilled in an autumn top (for assets prices)," BAML said, adding positioning was becoming "more consistent" with that possibility. The "Bull & Bear" indicator was now at 7.6 - edging towards the "sell" signal of 8.

The analysts said the trigger was further strong inflows to high-yield, emerging-market debt and active equity funds and a drop in private-client cash levels to record lows.

An August "crack in markets" would require a further drop in the dollar index to 90 - it was at 93.7 on Friday - coinciding with unambiguous U.S labour and consumer weakness and a flatter U.S. yield curve.

An early warning would be an end to the gains by high-yield funds. So would dwindling gains by equity growth leadership funds, such as funds focussed on emerging-market internet and e-commerce.

BAML also said there was a "contrarian" signal to go into oil and energy after funds in that area saw their largest outflows in 16 weeks. There had also been a big redemption of energy exchange-traded funds, and private-client allocation to energy was at a record low.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

PUBG Mobile India: Launch date, trailer, competition from FAUG and other latest updates

With massive 6,000mAh battery, Realme C12 priced at under Rs 10,000 | Tough competition for Xiaomi, Nokia, Vivo, others in offing

Big Yes Bank initiative for MSME! Up to Rs 5 cr collateral-free funds made available

7th Pay Commission latest news: Salary Rs 67,700 to over Rs 2 lakh plus 7th CPC DA, HRA, TA; check this central government job offer at upsconline.gov.in

Bank Interest Rate: Best returns! These two banks top the list

Home First Finance Company IPO to open on Jan 21; Price band at Rs 517-518/share

Buy gold online for just Re 1 onwards; more details inside

Zero fee, no hidden charge on UPI payments to merchants! Encouraging MSMEs, small businesses to adopt digital payments

CBSE, NEET, JEE exams 2021: Big relief for students announced—check education minister Ramesh Pokhriyal message

ITR Refund: Want to check Income Tax Refund status online? Do it this way at incometaxindia.gov.in; easy stepwise method

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved