US jobs data raises expectations
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- The global focus once again shifted to Europe where economic recovery is below par. Key economies such as Italy and France have failed to instil confidence on the path of economic recovery.
- Meanwhile, in the US, the jobs data once again is starting to get encouraging and there are talks that the liquidity support to markets might get withdrawn sooner than expected.
- Chinese economic recovery, too, has many takers and data suggest that the economy is moving as per expectations.
- According to data from EPFR Global, a fund flows and asset allocation data aggregator, the early part of August witnessed outflows from US bond and equity funds as jobs data turns positive raising expectations that interest rate could be raised sooner than expected.
- At the same time, Europe equity funds and emerging Europe equity funds witnessed outflows as economic growth in the region falters again.
- Emerging markets remain a favourite for retail and institutional fund inflows. But flows into Europe funds did resume towards the end of the month. According to data from EPFR, China equity funds are garnering large inflows in recent weeks
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