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Global Equity Funds Extend Inflow Streak as Oil and AI Risks Rise

Global equity funds attracted $10.51 billion in net inflows, extending their streak to nine weeks as investors remained optimistic about corporate earnings. European funds led with $10.29 billion in inflows, while Asian funds received $4.5 billion. US equity funds, however, recorded $7.34 billion in outflows as investors reduced exposure to some technology stocks.

Global Equity Funds Extend Inflow Streak as Oil and AI Risks Rise
Source: Reuters

The latest flows came as Brent crude climbed above $100 a barrel amid rising Middle East tensions, while US 10-year Treasury yields topped 4.7%. Higher oil prices have renewed inflation concerns and increased pressure on interest rates, making high-growth stocks less attractive.

Concerns over heavy AI spending have also hit technology sentiment. Google’s weak free cash flow and rising capital expenditure have pushed worries about the cost of building AI infrastructure. Despite this, technology funds still attracted $2.12 billion for a fourth straight week, suggesting investors remain interested in AI but are becoming more selective about where they put their money.

Investors are choosing European stocks over US equities

European stocks may be attracting investors because the region offers more exposure to sectors such as banks, energy and industrials, which can benefit from stronger economic activity and higher commodity prices. This gives investors access to companies whose earnings are driven by different factors from the US technology giants.

Currency movements may also be part of the appeal. A stronger euro can improve returns for international investors holding European assets when converted back into their home currencies. If the dollar weakens while European company profits remain solid, global investors could see European equities as a useful way to spread their exposure across markets.

Should crypto investors be worried about the latest market pressure?

Crypto investors may need to pay attention as Bitcoin and other digital assets often fall when investors move away from risky assets. Higher US Treasury yields can make safer investments more attractive, while a stronger US dollar can also put pressure on Bitcoin. Still, crypto does not always move in the same direction as stocks, so a tech selloff does not always mean Bitcoin will fall.

For investors, the current market could be a reason to spread their money across different assets instead of leaving crypto completely. A mix of stocks, bonds, gold and crypto can help reduce the impact if one market falls sharply. 

Previously, the US spot Bitcoin ETFs started 2026 with very strong movement, recording about $1.2B in inflows in just two days. Digital asset investment products recorded $1.2 billion in net inflows, extending a four-week streak of positive flows.

 

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