Global Equity Funds attracted most weekly since 2008, says EPFR

Equity funds attracted the highest weekly earnings around the world since the end of the second quarter of 2008, after the Federal Reserve set plans to support the U.S. economy, according to EPFR Global.

Investors committed more than U.S. $ 15 million capital funds tracked by EPFR in the week ended Nov. 10, said in an email dated 12 November. Commodity funds of the sector reached a maximum of 26 weeks, while flows in the Great China hit its highest level since late 2007. Emerging market entries of 79.9 billion U.S. dollars this year would exceed 2009's record 83.3 billion U.S. dollars.

"The cash flow faucets opened after the U.S. Federal Reserve stated his goals for a new round of quantitative easing - the QE2 call - on 4 November," said EPFR.

Stocks fell yesterday, extending the biggest weekly decline in three months with the U.S. benchmark indices, and commodities slumped amid speculation that China will raise interest rates. 500 Standard & Poor's fell 2.2 percent in the last five days, its biggest drop since the second week of August. A week ago, who joined more than two years amid improving incomes and Federal Reserve plan to pump 600 billion U.S. dollars into the economy through purchases of Treasury bonds.

China may raise rates within weeks after inflation accelerated at its fastest pace in 25 months in October, according to a Bloomberg survey.

Group of 20 leaders agreed to develop indicators to address the economic turmoil, while officials of the largest economies in Europe said the outstanding debt shall be exempt from a crisis resolution mechanism that can force bondholders to share costs of bailouts.

"Elements macro Domine '

"The market wants to go, but I worry about one thing and that is a domain of macro photography coming to the forefront," said Keith Wirtz, who oversees 18 billion U.S. dollars as chief investment officer at Fifth Third Asset Management in Cincinnati. "The market is largely through the earnings season, so we are moving in that period of calm. We may be moving back into that environment where macro themes dominate."

The Shanghai Composite Index sank 5.2 percent yesterday, the highest since August 2009. The Thomson Reuters / Jefferies CRB commodity index fell more than 18 months as oil and copper fell more than 3 percent.

Flows into bond funds followed by EPFR were positive for the 24th consecutive week in early November as collective flows year to date exceeded $ 365,000,000,000. EPFR tracks $ 13 trillion assets worldwide.

"With U.S. policy makers to open the taps further liquidity, investors focused their attention - and money - in emerging markets debt securities and other higher performance," said EPFR.