Home / Financial News / Goldman Sachs abandons five of six top trading calls for 2016 as turmoil hits markets

Goldman Sachs abandons five of six top trading calls for 2016 as turmoil hits markets

Just 40 days into 2016, Goldman's core recommendations for the next 12 months have come unstuck as price swings accelerate across currencies, stocks and bonds.

Goldman Sachs Group Inc. has exited five of six top trading strategies for one year afterwards they were thwarted by financial-market turmoil linked to signs of a slowdown in global economic growth.

The New York-based bank closed its demand dollar strength versus a similarly weighted basket from the euro and yen, recording a potential lack of about 5 percent, Charles Himmelberg, chief credit strategist, wrote in a note to clients Tuesday. Goldman has also ended a bet on five-year five-year forward Italian sovereign yields versus their German counterparts for a lack of about 0.5 percent, Himmelberg wrote.

“Markets have started out now by aggressively de-risking, apparently owing to fears that the recent slowdown in global growth could descend into recession,” Himmelberg wrote. “Financial credit spreads are spiking, especially in Europe, possibly signaling a reactivation of systemic risk concerns.”

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