uThe $24.7 billion withdrawal from U.S. stock funds by global investors during May occurud because they moved their money to European and emerging market assets due to rising U.S. tariffs and expanding national debt. The data from LSEG Lipper revealed that May brought the biggest U.S. equity outflow since last year.
The European funds received $21 billion in investments during May while their total inflows throughout this year achieved their highest mark since 2017. The Emerging market equity ETFs received $3.6 billion in investments during May.
The decline of the dollar combined with intense U.S. Treasury bond sales has damaged the secure investment appeal of American assets according to analysts. European stocks have performed better this year because of the European Central Bank’s aggressive interest rate reductions and positive expectations about Germany’s €1 trillion stimulus initiative.
The market movement demonstrates how investors choose assets with strengthening currencies and stable trade policies because Washington’s tariff policies create uncertainty about U.S. economic growth.
