Reuters with the report, citing a Morgan Stanley stated in commentary to institutional shoppers on Thursday:
- Laptop-driven macro
hedge fund methods on Wednesday bought $20 billion in equities - set to shed at the very least extra $25 billion over the following week
- one of many largest risk-unwinding
occasions in a decade - “The volatility of the final two weeks began out being very
rotational,” - “However that has now morphed
right into a broad index deleveraging (on Wednesday).” - If volatility persists within the coming days, the sell-off
would quickly improve - An extra 1% day-drop in
world equities may spark gross sales of $35 billion and macro hedge
funds may dump as much as $110 billion in a 3% day fall
—
Hold your eye on JPY, the carry commerce deleveraging is a large driver. 152 now the the extent to look at:
This text was written by Eamonn Sheridan at www.forexlive.com.
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