US inflows skyrocket; UK outflows amid Brexit uncertainty – Deutsche Bank

Research Team at Deutsche Bank, notes that the US inflows have shot up over the last three months to USD 120bn, the largest beneficiary of capital flows over that period.

Key Quotes

“YTD flows now stand at a massive USD 182bn, almost twice the inflows witnessed by the nation in 2015 (USD 99bn). The UK has begun to witness outflows, with nearly USD 4bn net outflow over the last month, bringing its YTD outflows to USD 0.7bn. This compares to big inflows last year and is evidence Brexit is having a material effect on the flow story.

Meanwhile, outflows from Europe extended significantly as one-month flows posted USD -12bn, taking YTD outflows to USD 93bn. Japanese outflows increased marginally during the past month, pushing YTD outflows to USD 16bn. By contrast, Canadian outflows declined as the country experienced moderate inflows in the last month. Hence, YTD net outflows softened to USD 8.5bn. Swiss and Sweden YTD inflows decreased a tad to USD 46bn and USD 2bn, respectively. Similarly, Aussie inflows also reduced marginally as the nation reported modest outflows over the month. Elsewhere, M&A activity in New Zealand and Norway continues to be sparse.”