Sector movers: Aerospace still under the cosh, Shell boosted by prospect of higher returns

Aerospace and Defence continued to the weakest link in the FTSE 350 with investor sentiment soft, possibly in part due to expectations that the Democrats might win in the US presidential elections on 3 November.

Indeed, a so-called 'clean sweep' of the White House and both chambers of Congress was also possible.

But the pandemic and the risk of a more prolonged economic downturn as a result was at least as important a factor.

Possible evidence of the above was to be seen overseas, in the form of continued selling of stock in aerospace giant Boeing, with some industry observers having been keeping an eye on its leverage and now on its rate of cash burn.

Going the other way, Big Oil continued to find a bid, helped by an upgrade out of analysts at Barclays for shares of Royal Dutch Shell to 'equalweight'.

The broker said the firm's new financial framework had addressed its key concern, setting "clear priorities for dividend growth, debt reduction, additional shareholder returns and further growth capex."

Indeed, they said that they expected Shell to be able to hit its new target level for net debt at the end of 2021 and saw the potential for $2.0-6.0bn in extra shareholder returns per year beyond that.

Top performing sectors so far today

Top performing sectors so far today

Oil Equipment, Services & Distribution 3,980.74 +3.62%

Oil & Gas Producers 3,397.55 +2.67%

Automobiles & Parts 2,907.22 +1.96%

Fixed Line Telecommunications 1,267.65 +1.81%

Real Estate Investment Trusts 2,405.86 +1.29%

Bottom performing sectors so far today

Leisure Goods 25,665.05 -2.65%

Aerospace and Defence 2,728.54 -1.54%

Health Care Equipment & Services 5,896.82 -1.47%

Personal Goods 36,276.32 -1.28%

Industrial Transportation 1,943.36 -1.08%