Global equity fund inflows slump on tech weakness, Fed hawkish stance

Key Facts

Amid mounting concerns over persistent monetary tightening and its impact on the tech sector, data shows a sharp slowdown in global equity fund inflows. According to Reuters data, inflows fell significantly in the week to June 24, driven by investor worries over debt-funded technology spending and the U.S. Federal Reserve's hawkish stance.

This decline comes amid continued inflationary pressures; Canada's May inflation data came in at 3.2%, above forecasts, reinforcing central banks' tightening bias. The slowdown also coincided with a speech by Fed Governor Christopher Waller on June 22, where he signaled further rate hikes, per the economic calendar. Global tech stocks have faced headwinds from demand concerns and rising financing costs.

Investors are now awaiting next week's PMI data for signals on global economic health. Markets will also focus on any additional remarks from Fed officials to gauge the interest rate path, amid continued uncertainty over growth prospects and the technology sector.