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China Inflation Accelerates in August as CPI, PPI Rise 
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Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Norway Core Inflation Rises to 3% in August 
Asian Stocks Fall as Oil Tops $100, Yields Rise 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
China Buys 1 Million Tons of U.S. Soybeans Ahead of Xi Visit 
Oil Prices Rally as Brent Nears $100 on U.S.-Iran Escalation 
Asian Currencies Steady as Yen Holds Firm, Oil Tops $100 
ECB Rate Hike in Focus as Oil Tops $100 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Iraq Seeks 6 Million Bpd OPEC+ Oil Quota 
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Positioning in the FTSE China A50 index turned neutral last week after months of bearish sentiment, following Beijing’s recent stimulus package, according to Citigroup strategists.
Both the FTSE China A50 and the Hang Seng Index saw their largest weekly increase in positioning from new risk flows, Citi said in a note released Monday. While most regional indexes have seen similar movements, the overall increase in notional levels remains moderate. The MSCI Emerging Markets index has shown the strongest bullish positioning, reaching its highest level in three years.
U.S. Markets Show Strong Bullish Sentiment
In the U.S., investor activity surged as nearly $18 billion in new risk flows were directed into the S&P 500 last week, along with around $5 billion into the Nasdaq. Citi noted that the S&P is approaching "one-sided and extended positioning," with long net notional at the 94th percentile. Despite this, the average profit from long positions remains small, reducing overall positioning risk.
The Nasdaq shifted from neutral to bullish, while positioning in the broader Russell 2000 index remained largely unchanged. Strategists noted that “all three U.S. indexes exhibit an increasingly bullish skew.” Short positions across the U.S. indices tracked are currently at a loss, with a potential for short covering, particularly in the Nasdaq.
“Although average loss levels here are modest (-2.5%), the larger than average (68th percentile) short notional could be under pressure if the momentum continues for the growth/tech-heavy index,” Citi strategists said.
Europe's Neutral Stance Amid Economic Concerns
In Europe, the Euro Stoxx 50 index remains mostly neutral, despite rising risk flows and weaker economic indicators, including contracting PMIs and a declining Ifo Germany business index. However, positioning edged higher, indicating potential interest in value opportunities following China’s stimulus announcement. Meanwhile, positioning in the DAX, FTSE, and Euro Banks remained unchanged, with exchange-traded fund (ETF) flows flat for the Euro Stoxx and negative across the DAX, FTSE, and Euro Banks.
