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Materials outperforms Utilities as equities show no defensive rotation

VIX stayed broadly unchanged last week around 15.5, with oil and AI capex cited as key support for equity resilience.

Reported · Written up by our desk · Sectors

Danske Research Team said equities ended Friday higher, even though several markets, especially in the US, finished the week lower, pointing to a mixed cross regional tape rather than a broad risk-off shift.

The team attributed the lack of defensive rotation to robust macro and earnings data, alongside sector leadership from Materials over Utilities, which it said runs counter to what would normally be expected when growth and capex are solid.

Danske also pointed to low volatility, saying the VIX hovered around 15.5 through the week and ultimately ended broadly unchanged.

In its view, several forces continued to shape equity markets, including the oil narrative tied to the Strait of Hormuz, the durability of an AI capex buildout, and heightened fears related to dollar debasement alongside exceptionally strong macro data.

Latest closeVIX 14.25 ▼2.6%

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