Flows are rotating into Utilities & Infrastructure Focus while Cross-Sector Defensive Cohort weakens

🇪🇺 A clear flow shift is underway as defensive sectors exit sharply while utilities and infrastructure stocks see robust inflows, signaling a potential rotation amid cautious sentiment. The largest outflow from the Cross-Sector Defensive Cohort hit $2.66 billion, led by $ASRNL-AS alone, contrasting with a $1.92 billion inflow into the Utilities & Infrastructure Focus theme, driven by NOVN-SW. The breadth of active flow clusters narrowed considerably, confirming the move is concentrated within defensive themes rather than broad market support. This divergence underscores a growing preference for utilities and infrastructure amid ongoing risk aversion. Next, watch whether inflows sustain into NOVN-SW and if the defensive rotation broadens beyond a handful of leaders. The market’s next step hinges on whether this flow pattern persists or shifts back toward more cyclical sectors.