{"id":18975,"date":"2023-04-21T11:42:01","date_gmt":"2023-04-21T11:42:01","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/investors-cut-cash-holdings\/"},"modified":"2023-04-21T11:43:45","modified_gmt":"2023-04-21T11:43:45","slug":"investors-cut-cash-holdings","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/investors-cut-cash-holdings\/","title":{"rendered":"Investors cut cash holdings as market focus shifts to inflation"},"content":{"rendered":"<p>By Lucy Raitano<\/p>\n<p>LONDON (Reuters) &#8211;     Investors cut their cash holdings for the first time in eight weeks in the week to Wednesday, while shedding equities and gold, according to a report from BofA Global Research on Friday.<\/p>\n<p>Market focus has shifted to inflation and the outlook for monetary tightening in recent weeks as fears around banking stocks receded and a market measure of volatility fell to its lowest level since November 2021. <\/p>\n<p>Cash funds saw outflows of $65.3 billion, BofA said, citing EPFR data. Bond funds recorded inflows of $4.6 billion, while investors sold $2.6 billion of global stocks and pulled $70 million out of gold funds.<\/p>\n<p>Last week data showed U.S. consumer prices rising in March, while data this week showed signs of the labor market cooling. <\/p>\n<p>&#8220;Core inflation in big economies remains stubbornly high,&#8221; the BofA analysts said, adding that inflation is being aided by structurally low unemployment rates.<\/p>\n<p>Almost all central banks are on hold or close to the end of the rate hike cycle, thus &#8220;locking in&#8221; high inflation, they said, &#8220;as is (the) trajectory of government spending, deficits and debt&#8221;.<\/p>\n<p>Emerging market debt funds saw their first weekly inflow in 10 weeks, of $600 million. Investors put $2.3 billion into emerging markets equities, the biggest inflow in four weeks.<\/p>\n<p>BofA said its bull and bear indicator &#8211; a measure of market sentiment that runs from 1 to 10, with a higher reading more bullish &#8211; jumped from 2.3 to 2.8 on &#8220;stronger bond inflows, EM stock inflows, (and) improving credit technicals&#8221;.<\/p>\n<p \/>\n<p> (Reporting by Lucy Raitano; Editing by Amanda Cooper and Jan Harvey)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/investors-cut-cash-holdings\/a-bank-employee-counts-u-s-dollar-notes-at-a-kasikornbank\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3K0B0-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3K0B0-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Lucy Raitano LONDON (Reuters) &#8211; Investors cut their cash holdings for the first time in eight weeks in the week to Wednesday, while shedding equities and gold, according to a report from BofA Global Research on Friday. Market focus has shifted to inflation and the outlook for monetary tightening in recent weeks as fears [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":18976,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-18975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3K0B0-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/18975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=18975"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/18975\/revisions"}],"predecessor-version":[{"id":19152,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/18975\/revisions\/19152"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/18976"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=18975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=18975"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=18975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}