Hargreaves Lansdown

Sector movers: Miners, Banks pace gains

Mon 03 July 2017 11:36 | A A A

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(ShareCast News) - Miners and banks are doing best on the back of better than expected manufacturing data out of China and the euro area which appear to be stoking risk appetite at the start of the new quarter.

Overnight, Caixin's China manufacturing sector purchasing managers index printed at 50.4, versus a reading of 49.6 for May (consensus: 49.8).

Nevertheless, the private survey compiler was rather glum when assessing the data, pointing out how in the face of "muted" client demand manufacturers had opted to cut inventories and to trim staff again.

In parallel, optimism about the outlook plumbed its lowest level since 2017.

Despite that, shares in Anglo American, Antofagasta, BHP Billiton and Glencore were all holding higher.

Shares in banks were also heading higher, and not just in the UK, on follow-through buying from the week before as market interest rates continued to climb higher.

To take note of, Bank of England chief economist Andrew Haldane was due to deliver a speech later in the day, with investors keen to learn whether he would stick to his recent more 'hawkish' stance on the need for a hike in Bank Rate or not.

Big Oil was also near the top of the leaderboard following news on the previous Friday that the US oil rig count declined for the first time in 24 weeks.

Baker Hughes reported that the US oil rig count fell by two to 756 last week.

In parallel, according to the latest weekly CFTC data in the States, during the five trading days ending on 27 June speculative 'short' positions on West Texas Intermediate hit their highest level since August.

Grocers were under pressure from profit-taking as the pound began the week on the backfoot.

As well, analysts at Goldman Sachs reiterated their 'sell' recommendation on Sainsbury, telling clients wage pressures, a challenged UK economy and stiff competition were all set to weigh on its grocery and Argos margins.

Top performing sectors so far today

Mining 14,937.25 +1.82%

Banks 4,430.65 +1.14%

Oil & Gas Producers 7,567.37 +1.12%

General Industrials 6,117.23 +0.58%

General Retailers 2,438.54 +0.55%

Bottom performing sectors so far today

Electronic & Electrical Equipment 5,723.95 -0.99%

Food & Drug Retailers 2,822.64 -0.80%

Fixed Line Telecommunications 3,379.66 -0.69%

Industrial Transportation 3,066.60 -0.61%

Financial Services 10,371.75 -0.60%

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