Global equity funds draw inflows ahead of Fed decision

Dec 8 (Reuters) - Global equity funds attracted significant inflows in the week through December 3 as expectations of a potential Federal Reserve rate cut this week boosted risk sentiment.

Investors bought global equity funds worth a net $7.93 billion during the week in a reversal from approximately $6.41 billion worth of net sales the prior week, LSEG Lipper data showed.

? Investors have priced in an 89.6% chance of a 25 basis point Fed rate reduction on Wednesday, the CME Fed Watch tool shows.

European and Asian equity funds saw a net $6.62 billion and $2.69 billion worth of weekly net purchases.

U.S. equity funds, meanwhile, faced outflows for a second successive week, worth $3.52 billion.

Weekly inflows in sectoral funds at $1.41 billion were the largest in three weeks. Industrials and financials drew a notable $495 million and $336 million respectively in inflows.

Global bond funds saw an $8.61 billion weekly net purchase, a tad higher than the preceding week's $7.38 billion net purchase.

Money market funds, meanwhile, attracted a sharp $110.4 billion, following three weeks of moderate outflows.

Gold and precious metals commodity funds drew the largest weekly net purchase in six weeks, valued at a net $1.93 billion.

In emerging markets, investors pumped $3.11 billion into equity funds for a sixth weekly net purchase. They also snapped up $682 million worth of bond funds, data for a combined 28,796 funds showed.

(Reporting by Gaurav Dogra; Editing by Susan Fenton)