Equities: Defensive rotation but indices near highs – Danske Bank

Danske Bank’s Danske Research Team observes that equities traded mostly lower, with defensives outperforming cyclicals and the SOX declining for a fifth session amid an ongoing AI-related rotation and mixed US bank earnings. However, several indices remain close to all-time highs, which the team interprets as sector rotation rather than broad deleveraging, given a resilient macro backdrop and strong earnings.