Les investisseurs adoptent une approche risquée pour la semaine des flux de fonds

Access shareholder letters from the world’s top hedge funds and discover the opportunities they are seeking to maximize their returns in 2023. Fund investors were net buyers of fund assets (including both traditional funds and ETFs) for the third week out of four, with LSEG Lipper fund flows reporting $10.8 billion for the week ending Wednesday, August 9. Fund investors were net buyers of money market funds (+$18.4 billion), taxable bond funds (+$785 million), and tax-exempt fixed income funds (+$278 million), while net redemptions were seen in equity funds (-$8.6 billion) for the billion dollar week ending market close. Investors took a risk-off approach to investing during the fund flows week as the second-quarter earnings season enters its final days and investors await the July inflation report at the end of the week. On the domestic equity side of the equation, the Dow Jones (+0.09%) posted the only positive return among broad U.S. indices, followed by the Nasdaq Composite (-0.64%) and the S&P 500 (-1.01%), with the Russell 2000 trailing the group (-1.83%). Overseas, the FTSE 100 (+0.70%) led the pack among frequently followed broad international indices, followed by the Shanghai Composite (-0.77%) and the Zetra DAX Total Return Index (-1.02%), while the Nikkei 225 (-1.76%) posted the largest decline for the week. For the fund flows week, the Bloomberg US Aggregate Bond Index (+0.47%) outperformed the Morningstar LSTA US Leveraged Loan Index (+0.13%) and the Bloomberg Municipal Bond Index (-0.17%). Federal funds futures traders are placing only a 14% chance of the Fed raising its target rate at the September Federal Open Market Committee (FOMC) meeting, and the Treasury market is pricing in even less, according to the CME Fedwatch tool. Long-term debt issuance fell for the first time in over two years, with yields at the long end of the curve declining. The 10-year Treasury yield edged lower during the week, dropping eight basis points (bp) – to 4.00% – while the one-month Treasury yield increased three bp to finish the fund flows week at 5.51%. The U.S. Treasury yield curve remained inverted, with the spread between 2-year and 10-year Treasury yields (-79 bp) narrowing by one bp over the week. The largest yield decline for the week was seen in the 4-month Treasury yield, which fell 20 bp to 5.34%. On Thursday, August 3, U.S. equities declined for the third consecutive day as bond yields increased following the Bank of England’s 25 basis point rate hike and continued assessment of news that Fitch Ratings had downgraded U.S. credit in early 2015. Meanwhile, energy shares rose after Saudi Arabia announced a production reduction through September. The 10-year Treasury yield increased 12 bp on the day, closing at 4.20%. U.S. equities generally declined on Friday, August 4, after the U.S. Bureau of Labor Statistics released a Goldilocks-style nonfarm payrolls report for July. The U.S. economy added 187,000 jobs last month, well below analysts’ expectations of 200,000. While the unemployment rate decreased to 3.5% compared to the previous month, average hourly earnings increased more than expected by 0.4% in July. The 10-year Treasury yield had its largest one-day decline since May 2, dropping 15 bp to 4.05% on the day. Additionally, shares of Apple Inc (NASDAQ:AAPL) fell 4.8% after the company reported its third consecutive quarter of declining sales and provided similar guidance for the third quarter. Do you know which under-the-radar stocks the top hedge funds and institutional investors are investing in right now? Click here to find out. The Dow Jones had its best one-day performance in seven weeks on Monday, August 7, as investors jumped back into the fray after the S&P 500 recorded its largest weekly decline since May in the previous week. Investors kept a close eye on Treasury yields and corporate earnings as we enter the final stage of the second-quarter earnings season while awaiting the expected inflation report later in the week. The 10-year yield increased four bp on the day after Federal Reserve Governor Michelle Bowman said over the weekend that the central bank should raise interest rates further to bring inflation back to the Fed’s target rate. Stocks plunged on Tuesday, August 8, after investors learned that Chinese exports had dropped by 14.5% year-over-year and imports had declined by 12.4%, highlighting concerns about weak global demand. Moody’s announced possible downgrades for six major U.S. banks, raising concerns about the overall health of the financial sector following last year’s sharp increase in interest rates. The 10-year Treasury yield finished the day down seven bp at 4.02%, as investors sought slightly higher risk and safe-haven opportunities. On Wednesday, August 9, stocks rose again in a rally ahead of next month’s crude oil futures expiration at a 2023 high of $84.40 per barrel and the release of CPI and PPI data in the next two days. Investors also reacted to the announcement of a 0.3% year-over-year decline in consumer prices in China, building on concerns from weak trade data released the previous day and slowing growth in the world’s second-largest economy. Exchange-traded funds (ETFs) saw net outflows during the first of seven weeks, totaling just under $3.1 billion for the most recent fund flows week. Authorized participants (APs) were net sellers of domestic equity ETFs ($3.0 billion), also the first of seven consecutive withdrawals, while non-domestic equity ETFs saw net outflows for the second consecutive week, but only $44 million last week. Small-cap ETFs (+$1.0 billion) saw the largest net inflows among equity ETF macro-groups for the fund flows week, followed by health/biotech sector ETFs (+$565 million) and equity income ETFs (+$446 million). On the flip side, large-cap ETFs (-$4.0 billion) saw the largest net outflows, followed by sector and other ETF macro-groups (-$835 million) and financial/banking sector ETFs (-$830 million). The Health Care Select Sector SPDR Fund (XLV, +$634 million) and the Invesco Buyback Achievers ETF (PKW, +$495 million) attracted the largest amounts of new net funds among individual equity ETFs. At the other end of the spectrum, the SPDR S&P 500 ETF (SPY, -$4.7 billion) saw the largest individual redemptions, and the Financials Select Sector SPDR Fund (XLF, -$533 million) saw the second largest outflows of the week.