Flows are rotating into Aerospace & Defense Focus while Transport & Infrastructure Cohort weakens

🇪🇺 A sharp flow reversal is underway in equities, with inflows into aerospace and defense contrasting sharply against massive outflows from transport and infrastructure. The largest single exit hit $AENA-MC for $1.93 billion, while AVIO-MI attracted $673 million in new bids, signaling a pivot away from cyclicals toward defensive sectors. This shift suggests traders are seeking shelter amid mounting macro uncertainty, even as some pockets of risk appetite remain. The evidence is clear: broad-based outflows from transport and major indices are still in play, but the inflow into aerospace and defense highlights a tactical rotation. Confirming this, AVIO-MI's bid came amid a $620 million inflow into FCIT.L and a $588 million bid for cross-sector defensives, underscoring a defensive stance. The next test will be whether this defensive bias sustains as macro data evolves or if cyclicals regain traction.