Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Thailand Inflation Remains Negative for 10th Straight Month in January 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
S&P 500 Positioning at Three-Year High: Market Risks and Global Trends
Positioning in the S&P 500 has reached a three-year high, according to Citi strategists. This extended positioning contrasts with other global markets, where investor conviction remains comparatively low. Historically, when positioning reaches these levels, the S&P 500 often experiences pullbacks of over 10% within two to three months.
Increased Positioning Risks
While Citi does not advise reducing exposure, they emphasize that heightened positioning could pose risks. In the past, profit-taking followed stretched profit and loss (P&L) situations, leading to market corrections. However, current P&L levels are positive but not overly stretched, meaning less capital is at risk, potentially reducing the likelihood of significant sell-offs.
European Markets Show Mixed Sentiment
In Europe, the overall sentiment remains positive, with Euro Stoxx 50 short positions decreasing. European banks, in particular, continue to attract long positions. In contrast, China's market reactions to recent stimulus measures have slowed, with positioning on the FTSE China A50 now neutral and the Hang Seng turning more net long.
Volatility in Chinese Markets
Citi strategists expect further volatility in Chinese markets as more stimulus measures are anticipated. Recent reductions in loan prime rates (LPRs) are likely to impact market positioning, with investors closely monitoring fiscal policy announcements expected later this year.
Asian Markets Remain Neutral
Meanwhile, no significant changes have been observed in the Nikkei and KOSPI 200, both remaining neutral. The S&P/ASX 200 has surged nearly 10% since August, driven by new long positions added last week.
