Investors withdraw $ 37 billion from European and emerging equities

Direct: Investors pulled $ 37 billion from European and emerging market assets over the past two months with trade tensions, according to Bank of America Merrill Lynch.

The pace of withdrawal of foreigners from emerging market assets and Europe coincides with concerns about the impact of the trade war.

The US bank said foreign investors had withdrawn $ 24 billion from European equity funds over the last eight weeks.

He added that $ 13 billion was withdrawn from emerging market funds during the same period.

The bank explained that withdrawals from emerging and European markets come at a time when the United States has adopted a hard line with its main trading partners .

Today, Washington has imposed tariffs on Chinese imports worth $ 34 billion, and Beijing has also announced its intention to reciprocate .

Investors withdrew approximately $ 2.9 billion during the week ending July 4 from European equities, which was the 17th consecutive week of cash outflows.

During the same period, emerging market equity funds recorded capital outflows of $ 1 billion, posting a weekly loss for the seventh consecutive year .

European stocks have seen a 2% decline since the beginning of the year while emerging equities have lost nearly 9% since the beginning of the year so far.