BofAML reported that the global stocks had the largest capital flow since the elections in the United States. The strategists at Bank of America Merrill Lynch (BofAML), led by Michael Hartnett, declared that the global stocks saw the biggest capital inflows of last 30 weeks with a number of $ 24.6 billion in the week ending June 14. They stated that the US stock funds had the largest investment of 26 weeks.
Exchange-traded funds were reported to be the big winners with a $ 26.3 billion capital flow versus a capital outflow of $ 1.7 billion from stock investment funds.
On the other hand, the developing market capitalization entered into the 13th week of capital inflows, while capital flows to European stocks reached the 12th consecutive week. In Japan, the first stock fund flow was observed in the last three weeks.
Capital flows into the markets have turned to small-scale stocks and financial sentiment from the beginning of the year.
If we look at the sectoral basis, there have been capital flows to finance, consumer, health, utilities, infrastructure, technology and energy shares, and capital outflows from real estate and material shares. Although the huge sales wave of technology stocks occurred at the same time as the flow of capital flows to the sector, they did not compensate each other.
European stocks rose after a two-day downturn with a broad rally. The carmakers have risen after robust sales data.
The Stoxx Europe 600 Index rose 0.5 percent while all industry groups moved upwards. The carmakers have widened their profits after the demonstration of a data showing that car sales in Europe rose again in May. The improved economic outlook and political stability in France supported the sector’s recovery.
The Stoxx Europe 600 Index managed to lose 0.6 percent during the week despite its gains.