Global money market funds witnessed a surge in inflows in the week through March 5 as investors sought safety following the United States’ move to escalate its trade war by slapping steep tariffs on imports from Canada, Mexico and China, fuelling concerns about the potential impact on the global economy.

Investors pumped a massive $61.32 billion into global money market funds during the week, following a net $39.55 billion worth of purchases in the prior week, data from LSEG Lipper showed.

At the same time, demand for global equity funds dipped to a four-week low as these funds garnered just $2.97 billion worth of inflows during the week. Specifically, US equity funds lost their sheen, witnessing about $9.54 billion in net outflows during the week.

On the other hand, European and Asian funds saw robust inflows worth $5.87 billion and $5.83 billion, respectively, in the same period. The technology sector experienced a massive $2.91 billion worth of outflows, the largest weekly net sales since December 2021.

Industrials and consumer discretionary sectors also witnessed notable outflows worth $397 million and $367 million, respectively. Global bond funds were in demand for the tenth week in a row, grossing a net $17.02 billion in weekly inflows during the week.

Global short-term bonds drew a net $6.4 billion, the biggest amount for a week since January 8. High yield bond funds also drew a significant $3.17 billion in a seventh consecutive week of net purchases.

In the commodities segment, gold and precious metals funds received $1.22 billion, marking the fourth consecutive weekly inflow. Energy funds, meanwhile, faced a net $114 million worth of sales.

Emerging market data for 29,575 funds revealed, equity funds attracted $1.52 billion, the third successive weekly inflow. Investors also added a net $1.63 billion worth of bond funds, extending net purchases into a ninth consecutive week.