Quants Shift From Bearish, Unwinding $100bn of Inflation Bets - Bloomberg

Bloomberg reported Friday that Traders have unwound approximately $100 billion of bearish stock-bond bets, helping a recovery in markets after the worst first half in history.

Citing analysis from JPMorgan Chase & Co. and Nomura Holdings, the article stated commodity trading advisors have closed big short positions that were based on soaring inflation, resulting in a recent move higher for US equities and Treasuries.

Bloomberg wrote that "trend-following quants -- who take long and short positions in the futures market, typically with leverage -- aren’t setting the direction of markets, but are adding fuel to recent moves."

The S&P 500 has gained 7.6% so far in July, although it is still significantly below its January high.

Commodity trading advisors are said to have moved from short to neutral in the 10-year US Treasuries and S&P 500 futures, according to JPMorgan, while Nomura said a significant amount of stock shorts were exited.

By Sam Boughedda

You May Also Be Interested In

• Global S&P Futures mixed to up in premarket
• Nomura/Instinet Upgrades Sunway Healthcare Holdings (SUNMED:MK) to Buy
• Walmart expected to beat Q2 estimates as tariff refunds lift margins