While this may serve as a lagging indicator, especially in light of global market plunges, Daiwa Securities says net selling of equities globally increased to US$11.2 billion for the week ended Aug. 3, the biggest weekly outflow in 2011. Overall investor sentiment was weak, as non-ETF investors were also net sellers, to the tune of US$6.8 billion.
Daiwa says given recent investor concerns were U.S.-centric, the outflow from the U.S. market over the past week amounted to US$8 billion, with half of that accounted for by non-ETF investors. This overshadowed the outflow from developed Europe, which recorded net selling of US$785 million.
Finally, despite the negative sentiment, the outflow from global emerging markets (GEM) was modest, at US$1.2 billion, with Asia ex-Japan recording a marginal inflow of US$25.8 million, Daiwa notes.
Source: The Wall Street Journal