GCC banks to see ‘limited impact’ from global banking worries over SVB collapse: Kamco Gulf Business News

GCC banks to see ‘limited impact’ from global banking worries over SVB collapse: Kamco

BENGALURU: Global money market funds continued to attract strong inflows in the week ended March 29 as investors sought safer assets amid lingering concerns over turmoil in the banking sector and financial markets. concerns about tightening economic conditions, according to Reuters.

Global money market funds gained a net inflow of $47.6 billion, their fifth consecutive weekly inflow, underscoring investor caution after two regional US lenders collapsed earlier this month.

Meanwhile, investors sold about $18 billion worth of global equity funds after buying about $13.1 billion a week ago.

They exited US and European equity funds of $20.68 billion and $630 million respectively, but acquired $2.3 billion of Asian funds.

Still, some sector-focused equity funds were in demand, with technology and consumer discretionary receiving a net $1.41 billion and $630 million in net purchases.

Meanwhile, global bond funds received $481 million in a second straight week of net buying, helped by safe-haven demand for government bond funds. Global government bond funds saw inflows of $5.08 billion.

However, high-yield and short-to-mid-term bond funds recorded $2.94 billion and $1.43 billion in net sales, respectively.

Among commodities, precious metals funds gained $371 million in a third straight week of net buying. Energy funds also raised $111 million in inflows.

Data from 23,903 emerging markets funds showed stocks received $1.1 billion and bonds secured $24 million in inflows after posting two consecutive weekly outflows.

Yields on eurozone government bonds rose slightly on Friday as diminished concerns over the prospect of a global banking crisis offset the likelihood of lingering inflation in the zone.

Eurozone inflation saw the biggest drop on record in March, data showed on Friday. Commodity price pressures, which exclude food and energy, have accelerated, keeping pressure on the European Central Bank to keep raising rates.

Yields on the two-year German Schatz, the most sensitive to changes in interest rate expectations, rose 4 basis points to 2.79%. They rose 41 basis points this week – their biggest weekly increase since the start of 1990.

GCC banks to see ‘limited impact’ from global banking worries over SVB collapse: Kamco

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