Flows are rotating into Cross-Sector Financial & Industrial Cohort while Industrial & Defense Conglomerate Cohort weakens

🇪🇺 Flow has shifted sharply from a $21.58B exit from the Industrial & Defense Cohort to a $20.40B inflow into the Cross-Sector Financial & Industrial Cohort, signaling a clear rotation away from defense giants toward broader financial-industrial themes. The outflows from $STMMI-MI and the $16.50B exit from oil majors underscore a risk-off tone in traditional industrial sectors, while the inflow into AF-PA confirms persistent appetite for cross-sector financial exposure. This change narrows the active cluster count to 41, with inflows concentrated in a single theme and outflows broad-based across multiple defensive and commodity sectors. The next test is whether the inflow into AF-PA sustains or if the rotation stalls, risking a return to defensive crouch. The market’s ability to hold this flow shift will be crucial for the near-term trend.