Sector movers: Cyclicals lead gains on FSTE 350, but alongside defensives
General industries and retailers led gains on the FTSE 350 mid-week, but similar gains for some of the more defensive segments of the stock market, such as electricity and tobacco, betrayed latent caution.
Indeed, City analysts were cautious ahead of the key U.S. consumer price report the next day and upcoming earnings results from Wall Street heavyweights, including JP Morgan and Morgan Stanley.
“The risk of a recession in the US doesn’t do much for dollar demand, but traders will keep a close eye on tomorrow’s CPI as a key driver of near-term sentiment,” he said. he adds. GI noted Chris Beauchamp, Chief Market Analyst.
“[…] Rising interest rates have done little to lift bank valuations lately, and the expected upbeat outlook amid recession risks should keep that cap on for companies like JP Morgan and Morgan Stanley when they will publish their report on Thursday.”
On that note, oil and gas stocks were caught in the downdraft of the sharp 7% drop in Brent crude oil futures.
Meanwhile, industrial metals and mining issues have been impacted by continued market talk surrounding the outbreak of new Covid-19 cases in the People’s Republic of China.
Best performing sectors to date
General industry 6,070.99 +1.64%
Retailers 3,189.25 +1.62%
Electricity 10,996.15 +1.47%
Household goods and construction of houses 11,816.86 +1.30%
Tobacco 36,051.73 +1.24%
Worst Performing Sectors So Far Today
Automobiles and parts 1,598.61 -4.21%
Oil, Gas and Coal 6,834.35 -1.71%
Precious metals and mining 9,264.76 -1.38%
Leisure goods 17,733.58 -0.56%
Industrial Metals & Mining 6,227.27 -0.55%