Citi's equity markets positioning model notes conviction concentrates in KOSPI and FTSE

Citi writes that as geopolitical and macro uncertainty remains elevated, the combination of extended longs on FTSE and KOSPI, weakness in the US and China, builds a case for a continued selective risk approach The bank notes that global equity positioning continues to turn increasingly polarised, with select European and Asia indices emerging as clear favorites. "The US shows a growing bearish undercurrent despite the seemingly resilient headline flows," and "S&P 500 flows were positive but normalised positioning have hardly changed, while Nasdaq positioning trended lower." In Europe, Citi says that the FTSE holds max long, with elevated profit levels. In Asia, the KOSPI continues to be supported by new long risk flows, a trend also seen in Nikkei positioning. China A50 and Hang Seng positioning remains weak.