Safety takes a back seat as investors pile into EM, European stocks - Bank of America Merrill Lynch

Investors have injected $ 9.7 billion into equity funds over the week to Wednesday as emerging markets receive their largest inflows in 41 weeks, Bank of America Merrill Lynch said on Friday.

With rising hopes of a U.S.-China trade deal, investors were in risk-on mood, redeeming money from gold. The yellow metal funds saw outflows of $ 1.7 billion, the biggest since December 2016.

BAML said the rotation of US equities to the rest of the world continues this week with emerging markets sucking in $ 3.3 billion and Europe $ 1.5 billion.

Bond funds took in $ 4.2 billion, BAML added