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Investing.com -- Global equity and bond funds saw significant inflows last week, with European stock funds recording their largest inflow since before the Ukraine war, according to Bank of America (BofA).
Stock funds attracted $16.8 billion, while bonds saw $16.2 billion in inflows. Money market funds added $3.3 billion, gold drew $2.2 billion, and crypto funds saw $200 million in outflows in the week through February 19.
Among the key trends in fund flows, BofA highlighted a $4.0 billion inflow into European equities—the largest since February 2022. Treasuries recorded their biggest six-week inflow at $3.7 billion, while high-yield bonds posted the strongest five-week inflow since October 2024.
BofA strategists, led by Michael Hartnett, noted “lots of big” secular shifts driving breakouts in global markets.
They point out that the Euro Stoxx 50 index has finally surpassed its 2000 high, citing “DeepSeek, Russia-Ukraine, [and] a Euro bond” as transformative forces.
At the same time, strategists argue that the US stock market is peaking relative to the rest of the world.
They also pointed to the evolving tech landscape, stating that US technology leadership, once defined by the “Magnificent 7,” is now the “Lagnificent 7,” signaling that these mega-cap stocks may struggle to maintain their dominance.
By region, US equity inflows resumed at $12.1 billion in the last week. Emerging markets saw a third consecutive week of outflows, losing $5.3 billion. Japanese equities recorded a second week of outflows at $18 million, while Europe logged a second straight week of inflows at $4.0 billion.
In fixed income, investment-grade bonds posted a 69th consecutive week of inflows at $5.9 billion. High-yield bonds extended their streak to a fifth week with $2.6 billion, while Treasuries added $3.7 billion in their second week of inflows. Bank loan funds posted their 20th straight week of inflows at $2.4 billion.