Emerging market and Europe-focused equity exchange traded funds both enjoyed their highest monthly net inflows for a year in January even as US equity ETFs suffered their first outflow since April 2022.

The flows, recorded in data from BlackRock, reflect a tentative reversal in global stock market leadership. They show Wall Street — long the pre-eminent driver of worldwide equity returns — handing over the baton as fears of a European recession recede and a weaker dollar allows emerging markets their time in the sun.

Since the start of October, the Euro Stoxx 600 index has risen 19.1 per cent and the MSCI China index 24.3 per cent, both ahead of the 16.2 per cent gain of the S&P 500. Over the same period the DXY index, which measures the US dollar against a basket of currencies, has fallen 7.9 per cent.