Investors chase risky assets as stimulus measures offset virus worries: BofA

City of London financial district can be seen, whilst British stocks tumble as investors fear that the coronavirus outbreak could stall the global economy, in London
FILE PHOTO: The City of London financial district can be seen, whilst British stocks tumble as investors fear that the coronavirus outbreak could stall the global economy, in London, Britain, March 9 2020. REUTERS/Henry Nicholls

July 17, 2020

LONDON (Reuters) – Investors pumped money into riskier bonds and equity funds, BofA’s weekly fund flow statistics showed on Friday, as unprecedented stimulus measures helped offset worries about rising COVID-19 case numbers in the United States.

The policy support encouraged investors to pour money into riskier debt instruments, with emerging market debt seeing inflows of $1.9 billion, the largest in five weeks, while safe-haven government bond funds saw $3 billion outflows.

The investment bank said that in the week to July 15, $9.3 billion went into bond funds while $4.8 billion was channelled into equity funds. World stocks are just 6% away from touching fresh record highs.

Investors meanwhile withdrew $77.9 billion from money market funds, BofA said, noting that the latest week included a July 15 tax deadline in the United States.

(Reporting by Thyagaraju Adinarayan; Editing by Hugh Lawson)