Investors poured money into equity and bond funds and moved money out of gold in the week to Wednesday, according to BofA Global Research, taking heart from a string of positive data points and policy changes.
"You don’t get more Goldilocks than that," the report said of Thursday numbers that showed U.S. monthly consumer price inflation dipped by 0.1% and unemployment claims were a muted 205,000, a reference to something being 'just right' as in the fairy tale.
They also pointed to the impact of China reopening its borders after COVID-19 restrictions, lower EU energy prices and encouraging U.S. fiscal and labor market data.
The report found there were weekly flows into funds investing in bonds ($17.5bn), cash ($8.3bn), and stocks ($7.2bn), and out of gold ($0.4bn).
BofA also said there were the largest inflow to investment grade bonds since July 21 ($10.4bn), and the largest inflow to emerging market debt and emerging market stocks since April 22 ($3.6bn).
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