Asia stocks climb tracking Wall St rally; Japan near record highs after PM exit
Investing.com -- Investors are continuing to add risk as bullish momentum wanes, according to Citigroup strategists.
The Citi team, including Chris Montagu, reported that positioning in the S&P 500 and Nasdaq remains largely unchanged, though weekly flows indicate ongoing risk addition.
Normalized positioning is trending lower, with bullish levels falling for both the S&P 500 and Russell 2000, the strategists noted.
The profit and loss risks from positioning are lower for the S&P 500 and Russell 2000. Meanwhile, the one-sided long positioning in Nasdaq shows a mildly-increased profit-taking risk, though the strategists do not consider this concerning.
In European markets, EuroStoxx positioning has marginally eased in recent weeks but remains bullish, along with Germany’s DAX and Britain’s FTSE.
The strategists also pointed out that China-A50 positioning has eased, with profit taking driving recent unwinds. Despite this easing, both positioning and profit levels for China-A50 remain elevated and are the highest across the indexes tracked by Citigroup.
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