Global Equities Report

Global equities saw positive net inflows last week, according to a Goldman Sachs report covering October 25 to 31, driven by buying that outpaced short selling by a ratio of 2.5 to 1.

Key Highlights

• Regions Active in Net Buying:
  • Primarily led by North America and developed markets in Asia.
• Favored Sectors:
  • Industrials, Utilities, and Materials.
• Macro Products:
  • Made up over 85% of the notional net buying.
• Cautious Sectors:
  • Investors showed caution toward Information Technology, Communication Services, and Consumer Discretionary, which were the most net sold.
• Hedge Funds Adjustments:
  • Adjustments in leverage indicated a conservative shift.
  • Overall book Gross leverage saw its steepest decrease since June 2023, down by 3.9 points to 269.6%.
  • Net leverage climbed by nearly a point, reaching 77.8%.
• Chinese Equities Shift:
  • Notable shift in Chinese equities with the largest single-week de-grossing since January 2021 in anticipation of the upcoming NPC Standing Committee meeting.
• U.S. Market Activity:
  • Technology, Media, and Telecom (TMT) stocks experienced heightened trading amid earnings reports from major tech companies.
  • Hedge funds net sold U.S. TMT stocks at the fastest pace in five weeks, although TMT stocks remained net bought in October despite selling pressure during earnings.