Reuters with the report, citing a Morgan Stanley said in commentary to institutional clients on Thursday:
- Computer-driven macro
hedge fund strategies on Wednesday sold $20 billion in equities - set to shed at least more $25 billion over the next week
- one of the largest risk-unwinding
events in a decade - “The volatility of the last two weeks started out being very
rotational,” - “But that has now morphed
into a broad index deleveraging (on Wednesday).” - If volatility persists in the coming days, the sell-off
would rapidly increase - An additional 1% day-drop in
global equities could spark sales of $35 billion and macro hedge
funds could dump up to $110 billion in a 3% day fall
—
Keep your eye on JPY, the carry trade deleveraging is a huge driver. 152 now the the level to watch:
This article was written by Eamonn Sheridan at www.forexlive.com.
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