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LONDON (Reuters) - European equity funds pulled in more than $6 billion in net inflows in the week following the second-round of the French presidential election, a record for weekly flows, according to Citi and fund tracker EPFR Global.
A robust recovery in European corporate earnings and fading political risks has drawn global investors back into regional stock markets that still trade at valuation discounts to their global counterparts.
Of the $8.8 billion poured into global equity funds in the week to May 10, funds focused on Europe pulled in $6.1 billion, Citi analysts said, citing data from EPFR.
U.S. equity funds saw $2.4 billion in outflows, Citi said, further underscoring the switch away from American stocks into Europe, where stronger earnings growth is currently available at relatively cheaper valuations.
Corporate earnings growth in Europe over the first quarter is expected to come in at more than 20 percent, according to Thomson Reuters I/B/E/S, as the regions looks set to snap out of five years of sluggish profits.
Reporting by Vikram Subhedar, Editing by Danilo Masoni