U.S. large cap stocks see biggest weekly outflow in 16 months, says BofA report

By Alun John

LONDON (Reuters) - U.S. large cap stocks suffered their largest weekly outflow since December 2022 in the week to Wednesday, Bank of America said, with traders nervous that sticky inflation will push rate cuts further out and geopolitical tensions adding to caution.

U.S. large caps saw $15.8 billion of outflows in the week, while stocks in general saw outflows of $19.6 billion, Bank of America said in its weekly round up of flows in and out of world markets using EPFR data.

The week to Wednesday covered last Thursday's tumble on Wall Street on hawkish remarks from Federal Reserve officials and oil nudging above $90 a barrel, and this Wednesday's stocks selloff on stronger-than-expected U.S. inflation data. [.N]

After that data, markets pushed back expectations for a Federal Reserve rate cut to September from June - though pricing is volatile - which has ramifications for other central banks, including those in Europe.

Japanese stocks s...