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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
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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.

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