U.S. equity fund outflows ease on cooling inflation pressure, trade deal optimism

(Reuters) -U.S. equity funds witnessed the smallest weekly net disposal in four weeks in the week through June 11 as a smaller than expected rise in consumer prices in May, and a U.S. trade deal with China, eased investor worries.

According to LSEG Lipper data, investors liquidated just $212 million worth of U.S. equity funds during the week, the smallest weekly net outflow since approximately $13.65 billion worth of net purchases a month ago.

U.S. sectoral funds, however, still witnessed net inflows worth a sharp $1.53 billion, the biggest amount for a week in four. Communication services, financial and industrial sectors with $529 million, $399 million and $388 million in net inflows, lead the gains.

The equity large-cap, mid-cap and small-cap fund segments, meanwhile, faced a net $2.65 billion, $1.35 billion and $100 million worth of sales.

Investors added money into U.S. bond funds for an eight consecutive week, with their $4.08 billion worth of weekly net purchase.

They racked up U.S. short-to-intermediate investment-grade funds, short-to-intermediate government & treasury funds, and municipal debt funds worth a notable $2.37 billion, $1.02 billion and $523 million, respectively.

At the same time, money market funds had a net $15.18 billion worth of weekly outflow, partly reversing a significant $66.24 billion weekly inflow, gained in the previous week.

(Reporting by Gaurav Dogra in Bengaluru;)

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