Citi Reports Weaker Global Equity Flows with Stable Investor Positioning
According to Citi's latest positioning analysis, global equity flows have weakened while investor positioning remains relatively stable. In the U.S., although long-term positioning is modestly above neutral, gross exposure has decreased ahead of key inflation data releases. Unrealized losses are rising in both S&P 500 and Nasdaq positions, with small-cap equities particularly vulnerable due to high unrealized losses. European equity flows deteriorated as investors liquidated long positions in the EuroStoxx while increasing short positioning in the DAX. Despite this, overall European market positioning remains stable due to offsetting investor movements. The DAX has a large concentration of losing short positions that could trigger short covering if economic conditions improve. In Asia, bearish sentiment increased notably in the Nikkei and KOSPI as investors reduced long exposure and added shorts. Positioning in Hang Seng and China A50 remains near neutral but with signs of renewed weakness observed.
Topics: global equity markets investor sentiment positioning data