Investing.com — US stock flows turned mostly negative in the week leading up to Christmas, Citi found on Thursday. Bond funds recorded inflows of $2.1 billion, while equity funds recorded outflows totaling $26.6 billion.
According to Citi, the majority of capital outflows came from U.S. ETFs, which faced $38.7 billion in net redemptions.
European funds had a smaller outflow of $0.9 billion, while global funds attracted $7.5 billion of inflows. In Europe, money market funds lost $11.7 billion last week, bringing the total outflow over the past three weeks to $42.5 billion.
Emerging market funds had another challenging week, with outflows of $1.1 billion, boosted by $1.3 billion in outflows from Chinese funds for the second straight week. However, GEM funds managed a modest inflow of $0.7 billion.
In Asia, foreign investors were net sellers in most markets. South Korea recorded $0.7 billion in net foreign outflows, while Taiwan and India recorded outflows of $0.5 and $0.4 billion, respectively.
Japan also faced significant foreign sales, with $3.1 billion in outflows for the week.
US stocks were little changed on Thursday. It rose slightly, marking its fifth straight session of gains, even as weak trading and rising U.S. Treasury yields pressured major tech stocks.
And it saw little movement but closed marginally lower, snapping the Nasdaq’s four-day winning streak and halting the S&P 500’s three-session gain.
Along with several market drivers, investors reacted to the rise in US Treasury yields. It hit 4.64% earlier in the session, its highest level since May. However, a solid bond auction in the afternoon pulled yields down a bit, bringing the 10-year yield to 4.58% by late afternoon.
