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BofA Says US Stocks Saw Outflow in Week Trump Threatened Tariffs

(Bloomberg) -- US stocks suffered nearly $17 billion in outflows, according to Bank of America Corp., during a week marked by President Donald Trump’s threat to impose tariffs on some European countries over Greenland.

At the same time, European stock funds enjoyed their strongest six-week inflow since June, while Japanese funds posted their biggest weekly additions since October in the week ended Jan. 21, the bank said in a note citing data from EPFR Global.

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The data largely capture flows before Trump softened his rhetoric on Greenland during a volatile few days for investors. He later dropped his tariff threats after NATO Secretary General General Mark Rutte helped secure a breakthrough at the World Economic Forum in Davos.

US stocks have recouped most of this week’s losses, with investors whipsawed by Trump’s tariff retreat before data showing that the economy remains on solid ground. Still, the dollar has been weighed down by unpredictable US policymaking ahead of next week’s Federal Reserve meeting.

Bank of America’s bull-and-bear indicator still shows “extreme” bullishness on stocks overall, though that has slightly come down amid “big outflows” from some funds, strategists led by Michael Hartnett wrote in the note.