FYI:
The flow picture largely remained unchanged in the past two weeks, with capital withdrawn from equity funds and plowed into bonds.
Total estimated outflows for the two weeks ended September 19 was $7.2 billion, lower compared to the prior two weeks. As usual, equity funds experienced outflows of more than $9.5 million, while bonds saw over $5 billion in inflows. Hybrid funds, which consist of both equities and bonds, experienced outflows of $2.8 billion. Taxable bonds were also in vogue, seeing around $5 billion in inflows.
The U.S. and Canada have finally reached a trade deal to replace NAFTA. The new agreement, which also includes Mexico, governs more than $1 trillion in trade and will last 16 years. The deal will be reviewed every six years.
The trade dispute between China and the U.S. has escalated, with both countries slapping additional tariffs on each other’s imports. U.S. was first to target $200 billion worth of Chinese imports with a 10% tariff. China struck back, imposing levies on $60 billion U.S. imports.
The U.S. Federal Reserve has increased interest rates to 2.25%, in a widely expected move. The U.S. central bank exacerbated confidence in the economy and indicated another hike was possible this year, followed by three additional ones in 2019.
Bank of Japan, meanwhile, kept its monetary policy steady, as expected, and committed to keeping interest rates low for a long period of time.
Regards,
Ted
http://mutualfunds.com/news/2018/10/02/mutual-funds-scorecard-october-02-edition/?utm_source=MutualFunds.com&utm_campaign=e7e2288246-Dispatch_Weekend_Engage_10_3_2018&utm_medium=email&utm_term=0_83e106a88d-e7e2288246-290921629&goal=0_83e106a88d-e7e2288246-290921629
