We detected an unusually large dark pool trade in the iShares MSCI ETF on October 13, 2022. The dark pool trade looks like a huge $303 million sell order.
Dark Pool Trade in iShares MSCI $EFA Stock
It looks like market makers set the price of $EFA stock to $57.10 to execute the large block order sell without crashing the price of the ETF. The narrative emerges that a large institutional investors wanted to reduce exposure to the MSCI EAFE index due to bond market issues in the UK and Sweden spreading throughout the EU.
A third of developing markets have bonds at distress levels. Emerging market governments that borrowed heavily in dollars when interest rates were low are now facing a surge in refinancing costs, evoking flashbacks to Asia’s 1990s debt crisis and stoking fears of a default wave.
Make sure to review this lesson on dark pool trading so that you understand the chart above.
The MSCI EAFE Index includes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.
UK Meltdown Continues
Europe Energy Crisis Sweden, Finland step in to avert Lehman-like situation
EAFE Ishares MSCI ETF Technical Analysis
The EAFE MSCI ETF is in a technical strong downtrend. Long-term indicators support a continuation of the downtrend.