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By Reuters Staff
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LONDON, May 7 (Reuters) - Investors loaded up on global equities in the week to Wednesday, BofA’s crunching of weekly fund flow statistics showed on Friday, as companies reported blowout earnings and major central banks downplayed worries about a dial back in monetary stimulus.
Equity funds attracted $18.5 billion, primarily driven by cyclical U.S. stocks closely tied to performance of the economy. Meanwhile, bond funds sucked in $13.5 billion in the week to May 5, BofA said, citing EPFR data.
Though the U.S. Federal Reserve said it would continue to keep the stimulus tap open despite strong economic data, BofA said “bad news is global tapering has begun” - referring to major central banks’ plan to cut down hefty bond purchases started in March 2020.