😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Citi: Bullish positioning in US equities high but Nasdaq momentum fading

Published 06/25/2024, 04:59 AM
Updated 06/25/2024, 05:00 AM
© Reuters.  Citi: Bullish positioning in US equities high but Nasdaq momentum fading

Investors still favor the US over European equities, with the bullish positioning in the S&P and Nasdaq rising last week, though the momentum for the latter is slowing, Citi strategists said in a Monday note.

“Across both S&P and Nasdaq new risk flows were offset by near similar amounts of long covering activity,” analysts wrote.

“S&P positioning is now near neutral, whereas Nasdaq bullish levels have reached the 94th percentile, however, average profits have moderated back to 1.5%,” they added.

In Europe, net positioning continues to decline, with political risk remaining a primary concern for investors. Despite European markets finishing the week higher, flow trends showed little change.

The FTSE and DAX saw significant declines, with DAX positioning now moderately bearish. Eurostoxx positioning remained unchanged, while European bank positioning returned to neutral.

Elsewhere, there has been renewed interest in Asia’s KOSPI and ASX, with bullish positioning accelerating in recent weeks. Both markets are moderately long but not extended, Citi noted.

As for China, Hang Seng stands out near 3-year highs, though domestic China-A market positioning remains neutral and non-consensus.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.