Good morning all.
According to Moody’s US money market funds have boosted their European exposure by 16%. In the first two months of Q3. They’ve pumped $27 bn into European institutions. The funds have mainly been going into Swedish and French banks, which have increased by 40% and 22% respectively.
“US money market funds have shown a much stronger appetite for investments in Europe in recent months. This reflects the subsiding concerns about Europe’s financial system”, said Yaron Ernst, Managing Director of Moody’s Global Managed Investments Group.
European funds have remained stable and have seen shifts within countries, also into Swedish and French institutions, with French exposure rising 9%.
The move into risk assets, particularly from US funds is what is helping to underpinning the euro strength.