© Reuters. Futures positioning indicates investors have started to buy China stocks
According to Citigroup strategists, there has been a notable shift in the futures market for two major Asian indexes.
New long positions in the and last week have mitigated the previously extended bearish positioning in both indexes. This change in market sentiment interrupts two months of persistent bearish flows for the .
“The turn was sharpest for A50 flows, but the two indexes remain the most extended net bearish markets in this report even after the recent new long positions,” the strategists said in a note.
In the United States, futures flows were mixed but predominantly bullish. Notably, the continues to exhibit the most extended net long positioning, and bullish positioning in the is also on the rise.
In Europe, there’s been a return to more bullish flows. Both the and have seen their bullish positioning extend even further. This trend aligns with recent market performance, although it stands in contrast to the shift towards outflows from European equity ETFs.
