Investors continued to pour money into European equities, with the region outperforming US stocks year-to-date, according to Bank of America. In the week ending March 7, European equities drew $4.1 billion in inflows, the largest since February 2022 when Russia invaded Ukraine. Over the past four weeks, this has totalled $12 billion.
The surge in European investments is attributed to a growing preference for China and the EU, as stated by Bank of America strategist Michael Hartnett. Equity funds more broadly saw $22.9 billion in inflows, with US equities attracting $8.5 billion and emerging markets drawing $2.4 billion. Technology shares have lagged this year, but technology funds just received their first inflow in five weeks.
Bond funds also saw significant inflows of $12 billion, although Treasuries experienced a notable outflow of $1.2 billion over the past 11 weeks.
Source: https://www.reuters.com/markets/europe/global-markets-flows-bofa-urgent-2025-03-07