Rising crude prices have stoked inflation anxieties, while expectations of a US interest rate hike are prompting investors to adopt a cautious stance ahead of the policy decision. According to LSEG Lipper data, global equity funds recorded net outflows of $23.21 billion in the week ending September 16, marking the largest weekly withdrawal since December 17, 2025.

US equity funds experienced $31.44 billion in net outflows, marking a fourth consecutive week of selling, a figure nearly unchanged from the roughly $32 billion in net redemptions seen the previous week. European equity funds saw $295 million in net outflows, while Asian funds attracted $6.26 billion in net inflows during the same period.

Oil prices climbed to four-month highs this week, amplifying inflation worries and pushing US Treasury yields higher, which weighed on funds focused on growth assets. On Wednesday, the Federal Reserve raised its benchmark interest rate by 25 basis points and signaled that further monetary tightening may be necessary to curb inflation fueled by energy costs tied to the Middle East conflict.

Global equity sector funds saw weekly inflows rise to a six-week peak, reaching $4.49 billion. Technology, financial, and consumer discretionary funds drew in $1.94 billion, $1.31 billion, and $621 million, respectively. Within the US market, sector-specific equity funds recorded inflows of $2.29 billion for the week, the highest level in seven weeks, with financial, consumer discretionary, and technology sectors attracting $1.37 billion, $795 million, and $775 million in net buying, respectively.

In emerging markets, equity funds saw outflows for a second straight week, totaling $1.61 billion. Global bond funds attracted $855 million in inflows, their smallest weekly figure since April 1. Investors pulled $3.85 billion from high-yield bond funds and $1.1 billion from euro-denominated bond funds. Meanwhile, government bond funds received $2.96 billion in inflows, and short-duration bond funds took in $1.96 billion.

Money market funds recorded outflows of $77.42 billion, ending a two-week streak of net buying. In commodities, gold and other precious metals funds attracted $1.17 billion in inflows, marking the ninth week of inflows in the past ten, while energy funds saw $148 million in outflows after inflows of $211 million the previous week.