Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Barclays notes bearish sentiment among global macro hedge funds, CTAs

EditorRachael Rajan
Published 31/10/2023, 18:48
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Global macro hedge funds and Commodity Trading Advisors (CTAs) have adopted a bearish stance on equities amid expectations of falling stock prices, according to a recent report by Barclays. This change in sentiment has been triggered by an increase in 10-year U.S. Treasury yields to around 5%.

The bearish outlook is reflected in the S&P 500's approximately 9% drop since July. CTAs have notably ramped up their short positions in U.S. technology stocks, indicating a broader negative perspective on the sector.

In addition to U.S. equities, these funds also show a bearish outlook on other assets including U.S. Treasuries, Japanese Government Bonds (JGBs), and German Bunds.

Despite the prevailing market conditions and growing pessimism towards equities and bonds, these funds maintain a bullish stance on oil. This divergence underscores the complexity of current global markets and the differing views on asset performance moving forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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.