During the week ending 22 September, investors bought into equities as the US central bank signalled the start of the unwinding of its balance sheet, according to data from TrackInsight.
US large cap ETFs reversed large outflows of the week prior, recording total sales of €5bn as the Federal Reserve announced plans to begin tapering its $4.5trn balance sheet in October. Although the FOMC maintained rates between 1% and 1.25%, Fed chair Janet Yellen said the decision to cut tens of billions of dollars per month from the balance sheet was on the back of strong US economic performance. The move was not welcomed by investment grade bonds and government bonds, which saw a significant reduction in inflows this week to €765m and €427m respectively, compared to €2.5bn and €2....
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