LONDON (Reuters) – Investors fled for safety over the past week, flocking to cash, gold and investment-grade bonds, BofA’s fund flow statistics showed on Friday, as the United States awaited for Congress to approve more stimulus amid a rising COVID-19 caseload
The trepidation over the fate of the stimulus package saw $7.4 billion leave equity funds in the week to Wednesday, the data showed. Promising fund flows into European equities over the past month also faltered with $1 billion flowing out.
U.S. equity funds witnessed the biggest outflows in six weeks, shedding $6.5 billion, the data showed.
Gold, which pierced through $2,000 to reach record highs this week, attracted $2.7 billion. Investment-grade bond funds meanwhile pulled in $14.7 billion as investors followed central banks, which continue to load up on bonds.
Central bank asset purchases now run at a pace of $2 billion per hour, BofA said.
(Reporting by Thyagaraju Adinarayan; editing by Sujata Rao)
