Flows are rotating into SKA-B.ST while Cross-Sector Defensive Cohort weakens

🇪🇺 A clear flow shift is underway, with a dominant move out of defensive sectors into cyclically aligned themes, signaling a potential risk of a broader rotation. Today’s snapshot shows outflows from the Cross-Sector Defensive Cohort led by $P911-DE, which alone shed $23.64 billion, while inflows into the SKA-B.ST theme surged by nearly $73 billion, driven by SKA-B-ST. The contrast underscores a significant pivot away from safety into more economically sensitive areas. This shift confirms a fresh appetite for cyclicality, with utilities, energy, and financials attracting strong inflows. The top bid in SKA-B.ST is now the leading flow, suggesting traders are front-running a shift in market mood. Next, watch whether this rotation broadens beyond the top themes or remains concentrated in a few pockets, as the sustainability of this move hinges on whether broader market segments follow the initial leader.