Tech names in particular came under pressure from the recent U.S. policy decisions, driving Information Technology to rank as the second most active sector in both the U.S. and Asia Pacific. In APAC, markets were generally higher with Japan as an outlier as the TOPIX (Tokyo Price Index) was down, and the Yen appreciated against the dollar. Expectations for economic growth and corporate performance coupled with inflation led to a 17% drop in Japanese SBL activity. Market volatility drove a slight increase of 2% month-over-month in French equities and an increase in shorts in both Financials and Consumer Discretionary sectors. 

Conditions will continue to be volatile until there is more certainty around U.S. economic and geopolitical policy under the new administration. This should lead to strong demand and elevated trade volumes in the near term for market participants which we’ll continue to report on when we’re back for a Q1 round-up in early April.