The biggest money flow story this week: the US market pulled in a net $24B over seven days, while Japan shed $12.3B and China lost $9.2B. The contrast is sharp. Over three months, Japan was a favourite with $297B in net inflows. That trend is reversing fast.
The US dominates both timeframes. It attracted $24B net this week and $689B over three months. Flow imbalance sits at 62.3 — moderate buying pressure, not euphoric.
China is the standout reversal. Over three months it bled $49.7B. This week alone it lost another $9.2B. Flow imbalance is just 28, signalling strong selling pressure. Investors are not done cutting China exposure.
Japan's reversal is the most dramatic. A $297B three-month favourite has flipped to a $12.3B weekly outflow. Flow imbalance dropped to 36.1. That is a significant trend break worth watching.
Global ex-US funds are a bright spot. Flow imbalance hit 97.8 this week — near total buying pressure. Broad international diversification is attracting fresh money.
Tech led all sectors this week with $7B in net inflows. Over three months, that number is $97.3B. The buying has been consistent and deep.
The reversal stories are Energy and Materials. Energy was a three-month winner at $10.7B net. This week it posted a $1.1B outflow with a flow imbalance of just 24.8. That is a clear rotation out.
Materials followed the same path. Three-month flows were negative at -$5.6B, and this week added another $743M inflow — a rare positive tick. Real Estate also attracted $952M this week, its best recent showing.
Industrials flipped negative this week at -$493M. Over three months it was a solid $13.8B recipient. Short-term sellers are testing a previously strong sector.
Fixed Income was the asset class winner this week at $17.2B net. That beat equities' $16.2B. Both carried strong flow imbalance scores above 53. Over three months, equities dominated with $1.18T in net flows. Bonds added $189.7B. Commodities, a three-month loser at -$71B, have flipped positive this week with $3.3B in net inflows — a notable reversal.
Active management is the strategy story of the week. It pulled $14.7B with a flow imbalance of 86.5 — the highest of any strategy. Over three months, Growth funds are the standout at $330B net and a flow imbalance of 93.1, signalling strong and sustained institutional demand. ESG continues to bleed: -$863M this week and -$15.3B over three months. Vanilla passive funds also saw $10B in outflows this week, despite leading over the three-month period.
Overall, this week's picture is cautiously risk-on. Money is moving into US equities, bonds, and active strategies — but the rotation out of China, Japan, Energy, and passive funds points to selectivity rather than broad confidence.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
