This summary highlights futures positions and changes made by hedge funds across commodities, forex and financials up until last Tuesday, February 1. A week where global stocks staged a strong comeback from the January sell-off. However, with the Fed signaling its readiness to tighten monetary policy, the market, as signaled through the smallest VIX short since May 2020, remains unconvinced about the market's ability to recover more ground. Bonds and the dollar held steady ahead of Thursday when hawkish BOE and ECB central bank meetings drove yields higher and the dollar lower.
The Bloomberg Commodity Index continued its weeklong ascent with the near 3% gain taking the index to a fresh record high. Gains were led by the energy and grains sectors with natural gas (22%), crude oil (3%) and soybeans (9%) recording strong gains. Precious metals meanwhile took a hit following the hawkish FOMC meeting on January 26. With soft commodities and copper also trading weaker the overall position held by large money managers held steady with additional longs in gas oil, natural gas, soybeans and cattle being offset by reductions across gold and silver, as well as copper, wheat and sugar.