European fund suffers outflow for 34th consecutive week

According to data from EPFR, an institution that tracks global flows of money, European equity funds faced redemption for the 34th consecutive week. For the week ending September 28th, outflows were $1.9 billion, bringing the sum to $95 billion, since mid-February. The European Central Bank (ECB) has launched the most ambitious monetary easing in its history. This year, it has reduced rates to -0.4 percent, lowest on record, increased the pace of bond purchases to €80 billion per month, introduced purchase of corporate securities, and introduced four new Targeted LTROs but the flows haven’t changed direction.

The outflow would soon cross the $100 billion mark as the short interests in stocks like Deutsche bank continue to build. The precarious health of the Deutsche bank, Germany’s biggest lender, which could face collapse in the face of a $14 billion fine from the regulators of the United States has posed doubts over the banking system in Europe and European Central Bank’s (ECB) ability to contain such a crisis.