Skip to main content
  • Register
  • Help
  • Contact us

Sector movers: Defensives have the upper hand

Tue 06 June 2017 15:40 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(ShareCast News) - Defensive issues paced gains as investors played it safe ahead of a raft of key risks events on Thursday, amid fresh geopolitical tensions in the Middle East and simmering concerns regarding the outlook for growth in the US and China.

Miners were at the top of the leaderboard, with precious metals outfits spearheading gains.

Just as yields on longer-dated governments bonds in the US and UK had fallen back towards their early November lows as the Trump 'reflation trade' ebbed, so too the price of gold was threatening to return to its November highs, at $1,337/oz..

The key level to watch as a possible signal that such a scenario was about to unfold lay at $1,295.45/oz., its year-to-date highs, according to Jose Maria Rodriguez, technical analyst at Web Financial Group.

The day before, strategists at JP Morgan recommended clients stick to a defensive stance, referencing the risk of a sharp correction in US stocks, a phase of significant de-risking in Chinese assets and the possibility that Italian political risks might come to the fore sooner than expected.

Other defensive sector sharing in Tuesday's advance included Tobacco, Pharma and Electricity.

Top performing sectors so far today

Mining 14,720.26 +0.96%

Tobacco 61,419.08 +0.56%

Pharmaceuticals & Biotechnology 14,752.31 +0.29%

Electricity 8,792.95 +0.23%

Industrial Metals & Mining 2,168.55 +0.16%

Bottom performing sectors so far today

Automobiles & Parts 8,101.40 -2.34%

General Retailers 2,575.30 -1.98%

Oil Equipment, Services & Distribution 12,336.37 -1.86%

Chemicals 13,278.49 -1.60%

Construction & Materials 6,809.26 -1.32%

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.