Torsten Asmus
The North American and European regions are by far the most notionally net sold in June so far, according to data by Goldman Sachs.
Although they are still net bought year-to-date, European equities (NYSEARCA:VGK), (FEZ) have been net sold each of the past three weeks.
This suggests that hedge funds have turned more cautions going into and after the European Parliament elections, analysts headed by Vincent Lin and Kartik Singhal said in a Prime Insights & Analytics Chart Pack report.
Within the developed markets of Asia, Hong Kong (EWH) and Singapore (EWS) are the most net sold markets month-to-date, the report said.
Japan (EWJ) saw little net activity, but “trading flows in the market also point to risk unwinds,” analysts said.
The Emerging Markets regions (EEM) are “modestly net bought” month-to-date, led by buying in South Korea (EWY) and Taiwan (EWT).
Lastly, net allocation in the emerging markets, excluding China, (EMXC) has risen to new highs, while net allocation in Chinese stocks (FXI) continues to be around the five-year lows.