Citi's equity positioning model says US flows are supportive, though European squeeze risk builds
- Citi says that global equity positioning remains supportive, but regional divergences are becoming more pronounced.
- In the US, risk flow and short covering are sustaining bullish positioning, though exposure is increasingly concentrated as Russell 2000 positioning reaches extended levels.
- In Europe, Citi says that improving risk sentiment and lower energy concerns have driven fresh longs and short covering, with the DAX the most likely source of further squeeze-driven upside.
- And in Asia, citi suggests that trends are less uniform; the KOSPI has seen a meaningful rebuild in bearish exposure, though the Hang Seng's rebound has been supported by the unwinding of profitable shorts.
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