Global money market funds attract $46.1 billion amid U.S.-Iran tensions

  • Global money market funds received $46.1 billion in the week through September 2, the largest weekly inflow since August 5.
  • U.S. equity funds recorded $11.12 billion in outflows, down from $22.72 billion the previous week and extending withdrawals to two weeks.
  • U.S.-Iran tensions, higher oil prices and bond yields drove demand for cash and shorter-duration debt, while gold funds posted an eighth consecutive week of inflows.

Global money market funds received a net $46.1 billion in the week through September 2, their largest weekly inflow since August 5, according to LSEG Lipper data covering 28,994 funds. Escalating U.S.-Iran tensions, higher oil prices and a global bond selloff encouraged investors to hold cash and favor shorter-duration debt. Separate U.S. fund data showed money market funds attracting nearly $48.76 billion, their highest weekly intake in four weeks. U.S. equity funds recorded $11.12 billion in net outflows, extending withdrawals for a second consecutive week but improving from $22.72 billion previously. Strong results from Nvidia and Dell Technologies helped limit the selloff and supported the view that AI-related spending remained intact. Global equity funds attracted $6.65 billion, reversing the previous week's $6.13 billion in outflows, while global bond-fund inflows eased to $10.01 billion, a five-week low. Gold and other precious-metals funds recorded $2.85 billion in inflows for an eighth consecutive week.

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