US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Trump Questions Housing Bill as He Prioritizes SAVE America Act 
HSBC analysts stated Monday that global equity fund inflows rebounded sharply in September, driven by recent rate cuts and China’s significant stimulus measures.
“Global equities are up around 18% in the first nine months of 2024,” HSBC noted, marking the highest returns for this period since the post-financial crisis recovery in 2009.
According to HSBC, global equity fund inflows reached their second-highest weekly level of the year, with $51 billion recorded in mid-September. The positive investor sentiment is primarily attributed to the start of a more accommodative monetary cycle, including rate cuts by central banks like the U.S. Federal Reserve, and China’s pre-holiday economic stimulus.
European Equity Funds See Recovery
European equity funds have seen a gradual recovery, reversing a significant portion of outflows recorded earlier in the year. HSBC predicts that the "positive momentum in fund inflows might continue over the coming weeks," influenced by dovish central bank actions.
UK and Healthcare Sectors Emerge as Investment Focus
The UK has emerged as a favored defensive play for global equity funds, benefiting from a cautious tilt among investors. "Investors seem to have preferred defensive UK equities over more cyclical eurozone markets," HSBC noted. Despite UK equity holdings being relatively high compared to the last five years, they remain below pre-Brexit levels.
HSBC also sees potential for increased allocations to Europe's overseas-focused sectors, which are currently underweighted compared to historical norms. The healthcare sector stands out, with HSBC citing its low relative holdings and an improving consensus outlook.
"We think that the outlook for Healthcare is more supportive as the sell-side EPS momentum has surged recently," the bank stated, particularly when compared to sectors like utilities, which currently have high fund positioning but weaker earnings outlooks.
The easing monetary environment is expected to support cyclical sectors like technology, which may see limited downside risk.
