U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
HSBC analysts stated Monday that global equity fund inflows rebounded sharply in September, driven by recent rate cuts and China’s significant stimulus measures.
“Global equities are up around 18% in the first nine months of 2024,” HSBC noted, marking the highest returns for this period since the post-financial crisis recovery in 2009.
According to HSBC, global equity fund inflows reached their second-highest weekly level of the year, with $51 billion recorded in mid-September. The positive investor sentiment is primarily attributed to the start of a more accommodative monetary cycle, including rate cuts by central banks like the U.S. Federal Reserve, and China’s pre-holiday economic stimulus.
European Equity Funds See Recovery
European equity funds have seen a gradual recovery, reversing a significant portion of outflows recorded earlier in the year. HSBC predicts that the "positive momentum in fund inflows might continue over the coming weeks," influenced by dovish central bank actions.
UK and Healthcare Sectors Emerge as Investment Focus
The UK has emerged as a favored defensive play for global equity funds, benefiting from a cautious tilt among investors. "Investors seem to have preferred defensive UK equities over more cyclical eurozone markets," HSBC noted. Despite UK equity holdings being relatively high compared to the last five years, they remain below pre-Brexit levels.
HSBC also sees potential for increased allocations to Europe's overseas-focused sectors, which are currently underweighted compared to historical norms. The healthcare sector stands out, with HSBC citing its low relative holdings and an improving consensus outlook.
"We think that the outlook for Healthcare is more supportive as the sell-side EPS momentum has surged recently," the bank stated, particularly when compared to sectors like utilities, which currently have high fund positioning but weaker earnings outlooks.
The easing monetary environment is expected to support cyclical sectors like technology, which may see limited downside risk.
