Flows are rotating into Financial Sector Cohort while Cross-Sector Defensive Cohort weakens

🇪🇺 Equities are seeing a clear flow reversal with inflows now surpassing outflows, but the dominant move remains concentrated in a handful of themes. The most striking shift is the $STAN-L-led inflow into financials, which pulled in over $144 billion, signaling a renewed bid for sector stability. Meanwhile, outflows from defensive and energy themes, including the P911-DE-led cross-sector defensive cohort, widened to more than $16 billion, underscoring a retreat from perceived safety plays. This flow pattern suggests traders are rotating away from defensive and energy bets toward financials, possibly betting on a broader economic recovery. The next key test is whether the inflows into financials can sustain and broaden beyond the top leader, or if the market remains heavily weighted on a few large flows. A sustained broadening would confirm a more durable shift, while continued concentration keeps risk of a quick reversal.