In our latest analysis of Delta One trading, we dive into the trends and metrics of global futures and US-listed ETFs across various asset classes. With comprehensive analytics from the past week, including net flows, CTA positioning signals, CFTC reports, open interest, and liquidity levels, we’ve garnered a holistic view of the movements in equities, fixed income, commodities, and currencies.

The past week saw a notable shift in futures flows. There was a substantial outflow from Dow Jones, MSCI EM, Germany 2y, Euro Buxl, and Copper futures, contrasting with significant inflows into FTSE 100, DAX, CAC, and US Treasury Ultra 10y futures.

CTAs, responding to key momentum signals, have largely maintained their long positions in equities, excluding China and Brazil. Nevertheless, there’s been a slight trimming as some short-term signals turned bearish. Notably, CTAs remain short in US Fixed Income. Their positions are still long in Precious Metals, Cryptocurrencies, and Oil, whereas they are short in Agriculture and have turned short in global FX versus the USD following its rise to year-to-date highs.

Continuing a trend, asset managers have kept historically high long positions in equities. However, there’s been a slight unwinding in the 2y-10y US Treasury futures compared to the previous week. Managed money has traditionally preferred positions across longer energy contracts and metals.

ETFs mirrored the broader trends, with substantial outflows from Equities and below-average inflows to Fixed Income. Fixed Income (+$2.6Bn) still fared better than Commodities and Currency/Multi-asset classes, which saw minor outflows on a week-over-week basis.

US equity ETFs were central to the outflows, although this was partially mitigated by modest inflows into International DM, most notably from China.

In terms of investment styles, Momentum continued to attract inflows, as did Multi-factor funds, while funds focused on other themes experienced outflows.

Looking at sector-specific movements, there was significant dispersion. Real Estate, Healthcare, Communication Services, and Technology sectors faced the strongest outflows. Conversely, Materials and Financials welcomed the most considerable inflows.

In the bond space, strong inflows into Aggregate/Multi-sector and International funds contrasted sharply with outflows from Short-term and Medium-term Government Bonds, reflecting broader market sentiment and reactions to the latest CPI data.

The markets remain dynamic, with various asset classes reflecting a complex interplay of investor sentiment and macroeconomic indicators. As we look ahead, we will continue to monitor these trends to provide insights into the evolving landscape of Delta One trading.