LONDON, May 13 (Reuters) - Hedge funds sold single

stocks at the fastest pace in five months in the week to May 10,

Goldman Sachs ( GS ) said in a client letter, ahead of U.S. inflation

figures that could determine global central banks' next moves.

Sellers also outweighed buyers of global equities for the

first time in four weeks, the Goldman Sachs ( GS ) prime brokerage note

which tracks hedge fund activity showed.

This included traders that unwound long positions, which

speculate that the price of an asset will rise, and those that

added short positions, which bet on a fall in value, the bank

said.

A reading of U.S. inflation this week could be the deciding

factor for near-term market direction.

While some central banks in Europe have started to cut rates

and the European Central Bank is widely expected to follow in

June, U.S. borrowing costs may stay higher for longer.

Hedge funds focused their selling on Europe and developed

markets in Asia, while North American and Asian emerging markets

had more buyers than sellers, the note said.

Chinese equities were bought for the third straight week, it

added.

Traders focused selling on so-called consumer discretionary

companies, including luxury items and cars, which ended the week

as the most net sold sector in Europe and North America, said

Goldman Sachs ( GS ).

Hedge funds ditched these long positions and added short

bets at the fastest pace since September, the bank added.

Technology and financial equities were the next most sold

sectors, said the bank, while hedge funds placed long bets on

energy, real estate and utilities.

The number of U.S. real estate long positions outweighed

bets against the sector by the most since June 2022, said the

note.