15 Jun 2012, by
After sealing the best week of the year for the Dow Jones Industrial Average (up 3.6%) on Friday, markets continued their erratic behaviour. Investors cheered the decision by China to cut its interest rates in order to prop up its economy along with the news that first-time filers for jobless benefits in the U.S. declined to 377,000. However, the reality of Spain asking European officials for rescue funds for its troubled banking sector along with Greece's upcoming elections placed a pall over the market. Investors were net redeemers, removing $391 million from the fund business (including open-end funds and ETFs) for the week ended Wednesday, June 13, 2012. However, the entirety of net outflows were from money market funds (-$11.7 billion), while equity funds took in $9.8 billion, taxable bond fund coffers attracted $1.1 billion in net new money, and municipal debt funds attracted $0.4 billion. Tom Roseen discusses Lipper's U.S. weekly fund flows.