The tide may finally be turning for global markets, and investors are starting to swim with it.

According to the latest LSEG Lipper data, global equity funds raked in $9.11 billion in inflows for the week ending on April 23, 2025.

That marks the second consecutive week of positive momentum, driven largely by signs of easing tensions in the U.S.-China tariff war, a major source of market jitters in recent months.

A Glimmer of Trade Peace

The main trigger for this uptick is geopolitics.

There’s cautious optimism in the air after reports surfaced that the Trump administration is considering dialing back tariffs on Chinese imports, and that Beijing might be easing its retaliatory stance by exempting certain U.S. goods from its eye-watering 125% tariff list.

For markets that have been tiptoeing on eggshells due to trade drama, that’s like opening the windows after a storm. And investors are responding.

Who Got the Most Love?

Not all funds were created equal this week, some regions definitely basked in more of the sunshine than others.

European equity funds saw $8.08 billion in fresh investments, while the Asian equity funds attracted $3.65 billion. Meanwhile, U.S. equity funds lost $1.35 billion, but that’s still a big rebound from the previous week’s massive $10.44 billion outflow.

So, while the U.S. is still lagging, the dramatic slowdown in outflows could be a sign that confidence is quietly returning.

But Not Every Sector Is in Vogue

Zooming in on sector-based equity funds, it’s clear that some investors are still playing defense or just not feeling it.

There were net outflows of $1.6 billion from these funds, marking four straight weeks of redemptions.

Here’s where investors pulled back the most: Financials reduced -$1.27 billion, consumer staples, -$425 million, and healthcare, -$353 million.

Looks like investors are rotating out of traditionally “safe” sectors and testing the waters with broader equity plays.

Bonds Make a Comeback (Sort Of)

Bond investors had a more mixed week, but there were signs of stabilization.

Global bond funds saw $1.94 billion in net inflows, while mortgage bond funds led the way with $4.79 billion in purchases.

On the other hand, short-term bond funds also did well, raking in $5.59 billion, but high-yield (junk) bonds took a hit, with $1.61 billion in outflows.

The bond market rally suggests investors are slowly regaining their appetite for fixed-income assets, especially the safer, short-duration types, as U.S. Treasury selloffs begin to cool down.

Money Market Funds are Back in the Game

In one of the more dramatic reversals, money market funds bounced back with $15.83 billion in net inflows. That’s a big change from the $113.12 billion outflow the week before.

Why is this reversal here? As risk sentiment improves, investors may be parking cash temporarily while deciding where to redeploy it.

Gold Funds Keep Shining

Amid the shifting tides, gold and precious metal funds remain a favorite. They clocked their 11th straight week of inflows, adding $676 million as investors hedge against lingering volatility.

Risk Appetite is Waking Up

Two straight weeks of global equity inflows, slowing U.S. outflows, and a surge in European and Asian funds all point to one thing: investor confidence is creeping back, even if we’re not fully out of the woods yet.

With the U.S.-China trade narrative softening (at least for now) and bond markets stabilizing, expect continued rotation into global equities, especially outside the U.S.