Investors pull $8.8bn from equity funds
The worst start to a year for global financial markets sparked the biggest weekly outflow of cash from equity mutual funds since September.
Investors pulled $8.8bn (€8.1bn) from funds that track stocks around the world, according to data collected by Cambridge, Massachusetts-based EPFR Global, as the weakening of China's currency rekindled concern that slowing growth there would spread.
Redemptions at US-based stock funds hit a 17- week high, with investors favouring funds that target Europe and Japan, where central banks have pledged continued support, data for the week ended January 6 shows.
"As was the case in early 2015, mutual fund investors tip-toed rather than sprinted into the new year," Cameron Brandt, research director at EPFR Global, and his colleagues wrote.
"Their caution was quickly justified as another spasm in Chinese equity markets rippled through global stock exchanges."
China spurred market turmoil during the week amid renewed concerns that its sinking yuan reflects weakness in the world's second-largest economy that could spread to other areas of the global economy.