By Investing.com — Global equities saw positive net inflows last week, according to a Goldman Sachs report covering October 25 to 31, driven by buying that outpaced short selling by a ratio of 2.5 to 1.
The net buying was led primarily by North America and developed markets in Asia, with sectors like Industrials, Utilities, and Materials among the most favored.
The Goldman Sachs prime services weekly report indicated that “Macro Products made up over 85% of the notional net buying,” although there was also notable long-side interest in single stocks, albeit to a lesser degree.
Conversely, investors are said to have shown caution toward sectors like Information Technology, Communication Services, and Consumer Discretionary, which were the most net sold.
Across global hedge funds, the bank says adjustments in leverage underscored a conservative shift.
Goldman noted that “Overall book Gross leverage” saw its steepest decrease since June 2023, down by 3.9 points to 269.6%, while net leverage climbed by nearly a point, reaching 77.8%.
The report highlighted a notable shift in Chinese equities as well, with the largest single-week de-grossing since January 2021, in anticipation of the upcoming NPC Standing Committee meeting.
In the U.S., Goldman Sachs said Technology, Media, and Telecom (TMT) stocks have experienced heightened trading activity amid earnings reports from major tech companies.
Hedge funds “net sold US TMT stocks at the fastest pace in five weeks,” but Goldman Sachs noted that TMT stocks remained net bought in October despite the selling pressure during earnings.