Capital flows showed a “bond massacre” is underway, with the largest weekly outflow from bond funds in 18 months, according to Bank of America Merrill Lynch.
Equities saw their largest inflows in 11 weeks in the week that ended on June 3, with the contrarian “buy” signal triggered in early January still in place, data from Bank of America Merrill Lynch showed.
Chinese stocks saw their biggest inflows in 14 weeks last week, when emerging market equity funds saw their first inflows in five weeks, the latest data show.
US earnings season is in full swing, with many investors watching reports closely to see how much damage the strong dollar has done in the first quarter.
Capital has been flowing out of US stocks, with many market participants worried about wild price swings in the most volatile earnings season in years.