New longs and short unwinds
STOXX 600 up 0.1%
Tech leads gainers
Sweden cuts rates
Wall St futures inch up
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NEW LONGS AND SHORT UNWINDS
Price action over the past week or so has seen investors unwinding the big spike in volatility seen at the start of the month, pushing up the S&P 500 .SPX so it's now around 1% below its peak.
Citi's latest weekly look at activity across futures markets suggests positioning changes on Wall Street were mainly driven by new longs - or bets on price gains - being added and a further unwind of short positions.
As a result, all S&P short bets are now loss-making and Nasdaq longs are close to all-in-profit territory, Citi says.
"Investors added over $16 bln in new risk flows to the S&P, driving bullish positioning back to increasingly extended levels and marking a clear break from the recent degrossing trend," say Citi analysts including Chris Montagu, noting that the while the rally means allS&P short positions are making a loss, the risks are less material as the size of these bets is smaller.
"Nasdaq and Russell 2000 bullish positioning edged higher. For the former, although a large number of long positions remain in loss, average loss levels have more than halved, taking significant pressure off the longs. A recovery back above 19,900 would see all longs return to profit," they add.
Nasdaq futures NQcv1 were last trading at 19,890.
(Danilo Masoni)
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FOR TUESDAY'S OTHER LIVE MARKETS POSTS
TECH LIFTS EUROPE, OIL STOCKS TEMPER GAINS CLICK HERE
MIXED BAG FOR EUROPE CLICK HERE
ANTICIPATION BUILDS FOR POWELL BLESSING ON RATES CLICK HERE
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