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hedge funds increase short positions against european builders and financial firms

Global hedge funds have continued to short European stocks for the second consecutive week, particularly targeting financial, materials, energy, and industrial sectors, according to Goldman Sachs data. Notably, Germany, Italy, the Netherlands, Denmark, and the UK saw the most net selling, with a focus on individual stocks rather than broader indices. Key short positions include asset manager Schroders and home improvement company Kingfisher, with significant bets against energy firm Petrofac as well.

kingfisher shares drop as profit outlook narrows amid budget uncertainty

Kingfisher Plc shares fell sharply after the company revised its full-year profit guidance to the lower end of the range, citing budget-related uncertainty in the UK and France that has impacted consumer sentiment. The stock dropped as much as 12% to 258.9 pence in London. Kingfisher now anticipates an adjusted pretax profit of £510 million to £540 million, down from a previous range of £510 million to £550 million.
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