Hedge funds using computers to trade equities are expecting to start selling to the tune of $20 billion to $30 billion in the next two weeks given retreating stock markets, a UBS note seen by Reuters shows.
LONDON, Oct 2 (Reuters) - Hedge funds using computers to trade equities are expecting to start selling to the tune of $20 billion to $30 billion in the next two weeks given retreating stock markets, a UBS (UBSG.S) note seen by Reuters shows.
Hedge funds using algorithms to follow market trends have turned neutral from bullish on stocks, the UBS note said.
The bank anticipates as much as $30 billion of outflows will soon hit markets, potentially exacerbating the downward move in shares, as these hedge funds start selling stock to follow the recent negative performance.
U.S. stocks fell 3.6% (.SPX) in the July-September period, their first quarterly decline of 2023, as investors grappled with the prospects of interest rates remaining higher for longer and rising oil prices added to inflation worries.
These hedge fund have continuously bought the dollar through September, said UBS, estimating the total amount of buying to add up to $60 to $70 billion.
Currency trading hit a record $7.5 trillion-a-day Bank for International Settlements said in September 2022, with 88% of volumes including a pairing with the dollar.
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LONDON, Oct 2 (Reuters) - Hedge funds using computers to trade equities are expecting to start selling to the tune of $20 billion to $30 billion in the next two weeks given retreating stock markets, a UBS (UBSG.S) note seen by Reuters shows.
Hedge funds using algorithms to follow market trends have turned neutral from bullish on stocks, the UBS note said.
The bank anticipates as much as $30 billion of outflows will soon hit markets, potentially exacerbating the downward move in shares, as these hedge funds start selling stock to follow the recent negative performance.
U.S. stocks fell 3.6% (.SPX) in the July-September period, their first quarterly decline of 2023, as investors grappled with the prospects of interest rates remaining higher for longer and rising oil prices added to inflation worries.
These hedge fund have continuously bought the dollar through September, said UBS, estimating the total amount of buying to add up to $60 to $70 billion.
Currency trading hit a record $7.5 trillion-a-day Bank for International Settlements said in September 2022, with 88% of volumes including a pairing with the dollar.
The original article contains 293 words, the summary contains 183 words. Saved 38%. I’m a bot and I’m open source!