Flows are rotating into Defense & Logistics Cohort while Cross-Sector Innovation & Services weakens

🇪🇺 A clear flow shift is underway, with inflows now outpacing outflows in equities, signaling cautious positioning. Yet the dominant move remains concentrated: a massive $25.59 billion inflow into the Defense & Logistics Cohort led by $DANSKE-CO, contrasting sharply with the largest outflow from the Cross-Sector Innovation & Services theme, which shed $16.05 billion led by SAP-DE. The overall flow count favors inflows (28) but is still heavily skewed by this one-sided trade. This divergence points to a tactical rotation rather than broad conviction. The next test is whether the Defense & Logistics theme sustains its momentum, confirmed by the ability of DANSKE-CO to hold above recent bid levels. If it does, it indicates a shift towards defensive positioning amid ongoing sector-specific stress. Otherwise, the market remains vulnerable to a reversal as the outflow pressure in cyclical and innovation sectors persists.