Arkea AM flags oil spike-driven sector rotation as investors pivot from semiconductors to energy, banks
XLE•Arkea AM sees July regime shift in sector leadership
Arkea Asset Management flagged a July regime shift as geopolitics and AI-driven positioning triggered a rotation out of semiconductors into energy and financials.
- Brent rose 24% to USD 90/bbl, reviving inflation fears and pushing long yields higher; US 10-year hit 4.73%, Germany 10-year reached 3.21%.
- US equities diverged as NASDAQ fell more than 6% while S&P 500 slipped 0.13%; financials gained 12.43%, energy rose 6.06%.
- Europe outperformed with Stoxx 600 up 1.16% despite tech down 13.55%; European small and mid-caps gained 4.5%.
- House view stayed constructive on risk assets, with a slight preference for equities over bonds amid volatile oil tied to Hormuz reopening uncertainty.
