Citi reported that investor positioning shifted away from growth exposures last week. Europe received new long inflows, while the US faced renewed short-selling pressure in technology and small-cap stocks. Asia showed the weakest positioning dynamics globally.
Citi reported a shift away from growth exposures in global investor positioning last week. Europe received new long inflows, while the US faced renewed short-selling pressure, particularly in technology and small-cap stocks.
Europe attracted broad-based inflows across major indices. The FTSE gained from fresh long accumulation, and the DAX improved largely through short covering. EuroStoxx remains the most bullish market Citi tracks, with positioning levels that are not extended, which suggests room for additional inflows.
European banks are stabilizing, but the recovery is driven by reduced bearish exposure rather than new long conviction.
US growth exposure unwinds
Investors in the US reduced growth exposure through long liquidation and new short positions. The Nasdaq saw the largest unwind across the indices Citi tracks, though its overall positioning remains net long.
Meanwhile, Russell 2000 positioning stayed at the bottom of its historical distribution after another week of continuous short accumulation. Elevated profitability among Russell shorts increases vulnerability to forced cover activity if a catalyst emerges.
Asia shows the weakest positioning
Asia showed the weakest positioning dynamics globally, with new short accumulation continuing for both Nikkei and KOSPI. The absence of meaningful long participation suggests bearish sentiment has not yet stabilized.
KOSPI now represents the most crowded short in the region, with much of the short base sitting profitably. Positioning momentum remains negative, but increasingly crowded short exposure raises the risk of a short-covering response if sentiment improves.
Source: Investing.com
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