LONDON, March 30 (Reuters) – Traders moved $508 billion into money within the first three months of this yr, the biggest quarterly influx since market turmoil early within the COVID-19 pandemic, in response to BofA International Analysis, because the failure of a number of banks despatched markets spinning.
Flows into money of $60.1 billion within the week to Wednesday had been down from $142.9 billion the earlier week, however the quarterly sprint for money was the most important because the first quarter of 2020, BofA mentioned on Friday, citing knowledge from EPFR.
Markets have gyrated wildly this month following the collapse of U.S. regional lenders Silicon Valley Financial institution and Signature Financial institution and Europe’s Credit score Suisse (CSGN.S).
Traders dumped financial institution shares, with a internet $600 million outflow from monetary fairness funds within the week, though expectations the turmoil might result in a slower tempo of central financial institution price hikes meant funds investing in tech attracted $400 million in inflows.
The S&P 500 monetary index (.SPSY) has fallen greater than 10% in March and is ready for its largest month-to-month decline in 9 months. In distinction, ‘huge tech’ shares (.NYFANG) are on monitor for a ten% month-to-month achieve.
“Panic, flush, unwind, then Fed blinked and off we rally into April,” BofA mentioned within the report.
The report additionally confirmed giant flows into rising market equities within the first quarter. If year-to-date inflows of $37.4 billion proceed on the similar tempo by way of 2023, it will be the biggest annual influx on report.
For the week to Wednesday, gold funds attracted a internet $500 million, and bond funds a internet $2.3 billion.
Reporting by Alun John; Enhancing by Amanda Cooper, Kirsten Donovan
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