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U.S. fund investors trim stock, commodity holdings in week -ICI

NEW YORK, June 13 (Reuters) - U.S. mutual funds and exchange-traded funds recorded their first overall week of withdrawals since March, Investment Company Institute (ICI) data showed on Wednesday. Cash flowed out of U.S.-based stock and commodity funds alike during the week ended June 6, while demand for bond funds weakened to $1.4 billion from a $5.4 billion average this year, the data showed. Overall, the mutual funds and ETFs tracked by the trade group posted $4.2 billion in withdrawals. "The market is caught between a bit of a rock and a hard place right now," said Katie Nixon, chief investment officer for Northern Trust Corp's wealth management business. "It's a battle between the micro picture, which is very strong, earnings are very strong and look to be very strong into next year, and macro factors," from the U.S. Federal Reserve's withdrawal of monetary stimulus to the mushrooming conflict between the United States and its trading partners. In an interview published on Wednesday by the newspaper Handelsblatt, World Trade Organization Director-General Roberto Azevedo warned that if the trade conflict between the United States and other countries intensifies, it could negatively impact the global economy and said there are indications this is already happening. An earlier report by Thomson Reuters Lipper unit covering the same seven-day period showed low-risk money-market funds took in the nearly $34.9 billion, the most cash in nearly five years. Money funds could be competing for cash with other safe-haven assets. Funds invested in commodities, such as gold, posted $761 million in withdrawals, the weakest demand since July 2017, according to the ICI. The following table shows estimated ICI flows for mutual funds and ETFs (all figures in millions of dollars): 6/6 5/30 5/23 5/16 5/9/2018 Equity -3,651 5,435 3,994 8,394 2,040 Domestic -4,531 4,701 3,352 6,066 1,302 World 880 734 642 2,329 738 Hybrid -1,118 -642 -807 -866 -788 Bond 1,376 2,235 5,206 5,177 2,735 Taxable 727 1,574 5,021 4,727 2,383 Municipal 648 661 185 450 352 Commodity -761 125 -73 -281 242 Total -4,155 7,153 8,320 12,425 4,229 (Reporting by Trevor Hunnicutt; Editing by Dan Grebler)

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