How did markets react to the interest rate hikes from both the US Federal Reserve and the European Central Bank? In a week where nonfarm payrolls in America reported a job increase way above the initial expectations, we use EPFR’s Fund Flows and Allocations data to deep dive into the latest investor sentiment trends.
Investors were expecting quarter-point interest rate hikes from the US Federal Reserve and European Central Bank (ECB) in early May. They got them, along with the collapse of another American regional bank, a warning from Treasury Secretary Janet Yellen that the US may not be able to pay its bills in June if the debt ceiling standoff persists and more violent protests against pension reform in France.
Market news this week are dominated by rumors of another possible interest rate rise from both the US Federal Reserve and the European Central Bank, as well as the latest US job market update. How is money moving in the meantime? EPFR’s Global Head of Customer Solutions, Steve Muzzlewhite, takes a look at our latest fund flow data.
China and cash were by far and away the most popular asset classes during the fourth week of April as investors and markets braced for another round of rate hikes in early May.