Investors Pour $15B Into Global Stock Funds as Middle East Tensions May Ease

International investors poured $15.02 billion into worldwide stock funds during the week ending April 1, marking the second consecutive week of positive investment flows as market participants expressed optimism about potential easing of Middle East tensions.

According to data from LSEG Lipper, this followed an even stronger performance the previous week when global equity funds attracted approximately $40.14 billion in new investments.

The investment surge occurred despite escalating rhetoric from President Donald Trump, who on Sunday issued warnings to Iran about targeting infrastructure including power facilities and bridges if the crucial Strait of Hormuz shipping lane remains closed by Tuesday.

American stock funds captured $7.05 billion in fresh investment during the latest reporting period, down from the previous week’s massive $36.95 billion influx. Meanwhile, European equity funds drew $3.25 billion in new money, while Asian markets attracted $2.96 billion.

In contrast to the equity market enthusiasm, bond funds experienced significant outflows as investors pulled $19.58 billion from fixed-income investments, marking the first week of net withdrawals since December 31, 2025.

High-yield bond funds saw particularly heavy selling, with investors removing $5.1 billion, while euro-denominated bond investments lost $3 billion in the same period.

Money market funds continued their downward trend for a second straight week, experiencing $16.93 billion in withdrawals as investors sought alternatives.

Precious metals investments showed signs of recovery, with gold and other commodity funds receiving $78.33 million in new investments, representing their first positive week since February 25.

Emerging market investments remained unpopular for the fourth consecutive week, with investors withdrawing approximately $3.29 billion from emerging market bonds and $1.98 billion from emerging market stocks, according to data covering 28,838 different funds.