Citi Says Global Equity Flows Weaken, While Investor Positioning Remains Relatively Stable
Citi's latest analysis indicates that global equity flows have weakened, though overall investor positioning remains relatively stable. In the U.S., positioning is modestly bullish, but S&P 500 flows are slightly bearish with increased short-selling. European markets saw a more pronounced deterioration in flows, particularly in the DAX with unusually large short positions. Asian markets, especially the KOSPI and Nikkei, show increased bearish positioning. Small-cap equities are an exception, with 93% of positions currently at a loss, posing a risk of unwinding.
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