Investors continue to withdraw from risky assets

Investors have withdrawn more than $ 20.5 billion from global equity markets during the week, showing how significant the trade-offs between US and China are.

Bank of America Merrill Lynch's cash flow analysis shows that on Wednesday the withdrawal of funds from equity funds by investors was the third in force this year. This move came after Trump's initial threats of imposing additional tariffs on Chinese goods.

The injection of funds amounted to $ 14 billion - most since the month of January. European stocks registered a tide of $ 2.5 billion, and emerging markets had a tide of $ 1.3 billion. According to BAML, this reflects the "trauma of trade negotiations".

With the new data so far, we are seeing a cash outflow from stock markets of $ 116 billion, which is the worst tide since 2016.

But the bonds recorded a weekly 18-week cash flow injection of $ 7.3 billion in the past week. BAML analysts identify the following tools as most attractive: mortgage-backed bonds, emerging markets debt and high yield bonds.

World markets suffered heavy sales this week after tensions between Washington and Beijing escalated. Dow Jones dropped 650 points for the past seven days and the S & P500 finished 2.5% down.

Following a series of warnings from Trump, the US raised tariffs from 10% to 25% on Chinese goods for $ 200 billion earlier today. In response, Beijing said they "regret that this situation has been reached" and that they will take the necessary countermeasures.

Source: CNBC

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