Global equity funds recorded an inflow of $266 billion over the past four weeks, according to The Kobeissi Letter. US equity funds have attracted $2.1 trillion in total since 2020, with $1.5 trillion of that amount arriving since the start of 2024. In contrast, emerging market Asia equity funds received $470 billion, while European equity funds experienced outflows of $426 billion.
The CME Group FedWatch tool indicates an 84.4% probability of a 0.25% interest rate hike by the Federal Reserve on December 9. During the October 28 meeting, the Fed maintained rates between 3.75% and 4%, with officials Lisa Cook and Beth Hammack dissenting in favor of a rate increase. Market participants are now awaiting upcoming consumer price index data to assess these expectations.
Bitcoin has not participated in the recent equity market rally, with US spot Bitcoin ETFs recording net outflows of $1.28 billion between November 2 and November 6. Rising interest rates increase Treasury yields, which creates pressure on non-yielding assets like Bitcoin. Additionally, a $42 billion 10-year Treasury note auction is scheduled for this week following recent sales that showed soft demand.
