Short positions slump to record lows as earnings season starts

The value of short positions in UK and European stocks has hit multi-year lows as the recent market run-up dissuades investors from making negative bets.

Figures from data provider Markit show just 1% of FTSE 100 shares were out on loan as of the end of Q3, the lowest level since it started recording such data in November 2006. In Europe, meanwhile, the value of equities out on loan stands at just $144bn, also the lowest level on record, Markit said. A similar story in the US means just 2.4% of S&P 500 shares are on loan to short sellers, according to the data provider. With global equity indices standing up almost 20% year-to-date, equity market optimism has proved a difficult trend to fight, even as companies prepare for the third...