Summary:Global equities saw largest net selling since April 2025Marks sixth consecutive week of equity outflowsSelling heavily skewed toward short positions (5.6:1 vs longs)North America and Europe led selling in dollar termsTech, industrials and healthcare hardest hitAsia saw sharp divergence between EM and DM flowsEuropean short exposure hits 10-year highGlobal equity markets experienced their largest wave of net selling in nearly a year last week, as hedge funds extended a sustained run of outflows amid rising macro uncertainty, according to Goldman Sachs Prime Services data.The bank’s weekly positioning report showed that global equities recorded their biggest net selling since April 2025, marking the sixth consecutive week of outflows. The move was driven predominantly by short selling, which outpaced long buying by a ratio of 5.6 to 1, highlighting a decisive shift toward defensive and bearish positioning.Selling was broad-based across regions, with North America and Europe leading in dollar terms. In sectoral terms, seven of the eleven major sectors saw net selling, with information technology, industrials and healthcare experiencing the heaviest pressure. In contrast, consumer staples, energy and materials attracted relative buying interest, suggesting a rotation toward more defensive and commodity-linked exposures.Asia also saw notable selling, recording its largest percentage net outflow since April 2025. However, flows diverged sharply within the region. In emerging Asia, selling was driven by long liquidation, while in developed Asia it was driven by increased short positioning. The shift was particularly pronounced in Korea, where a large portion of year-to-date buying was unwound during March.European equities remained a focal point for bearish positioning, with hedge funds extending their selling streak to six consecutive weeks. Short exposure in European macro products has risen to 11% of total exposure, the highest level in a decade, with the UK, Ireland and Germany seeing the most significant selling.Despite the broad-based selling, allocations to Asia remain elevated, indicating that while sentiment has deteriorated, investors have not fully exited positions, leaving scope for further adjustment depending on how macro risks evolve. This article was written by Eamonn Sheridan at investinglive.com.