LIVE MARKETS-Bearish equity positioning increasing across regions

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BEARISH EQUITY POSITIONING INCREASING ACROSS REGIONS

Investors grew more cautious on global equities over the past week, increasing their bets on market declines, according to Citi's latest equity positioning model.

In the US, investors reduced exposure to both the Nasdaq .NDX and S&P 500 .SPX as traders added bearish bets, while Europe notably lost momentum.

Citi strategist David T. Chew said the previous week's broad-based inflows into European shares reversed.

"FTSE’s fresh longs were covered this week with the DAX and Eurostoxx seeing shorts added too."

The blue-chip Euro STOXX 50 .STOXX50E suffered its sharpest weekly fall since July.

In Asia, investors added to bearish positions in Hong Kong's Hang Seng .HSI and South Korea's Kospi .KS11, despite already being heavily negative in both markets, Citi said.

The growing concentration of bearish bets across indices suggests there could be room for a sharp relief rally should a positive catalyst emerge.

"Highly profitable short positions in the Hang Seng, KOSPI and Russell 2000 would be vulnerable to a (positive) change in sentiment," said Chew.

(Samuel Indyk)

EARLIER ON LIVE MARKETS

SOFT START, FTSE DRAGGED LOWER BY HSBC CLICK HERE

EUROPE BEFORE THE BELL: POSITIVE TONE FADES CLICK HERE

ALL EYES ON AI CLICK HERE