Investors withdraw $20 billion from stocks in a week
May 12, 2019 | Investopaper
Investors have shown their lack of confidence in financial markets amidst growing trade tensions between US-China that is evident from the massive withdrawal of $20.5 billion from global equities in the past week.
After President Donald Trump increased tariffs on Chinese goods to 25 percent, the possible ending of the trade dispute has worsened instead. US equity funds outflow was reported to be around $14 billion while European funds outflow amounted to $2.5 billion. In aggregate, equity fund outflows have now reached $116 billion in 2019.
The market uncertainty has led the investors to invest in bonds as $7.3 billion has been flown over the past weeks. Both DJIA and S&P 500 have observed a sharp fall after the two largest economies are conflicting to settle the trade dispute.
