Sector movers: Construction and Mining lead amid stimulus hopes

Cyclicals paced gains on Wednesday with Construction and Mining issues faring best.

Boosting the former were reports that Downing Street was studying aid for young homebuyers, while miners benefitted from

the hope of near-term support for the economy from lawmakers on Capitol Hill.

Overnight, US President Donald Trump upended hopes that a $1.6-2.2trn stimulus package might be agreed between Republicans and Democrats before the 3 November elections, halting negotiations until after the elections.

Nonetheless, Trump said he was open to immediately signing into law meaasures to extend monthly income support for Americans and for furloughed airline workers, among other measures.

Gains for the above mentioned areas of the market were offset however by the drag from Big Oil after analysts at Morgan Stanley cut their target prices for shares of BP and Royal Dutch Shell.

According to the investment bank, potential valuation upside had begun to emerge.

Yet a cocktail of potential headwinds on both short and longer-term time horizons meant that investors would likely be best served by waiting a bit longer before turning more positive, especially in the case of BP and Royal Dutch Shell.

Top performing sectors so far today

Mining 18,232.08 +2.36%

Chemicals 12,765.61 +2.10%

Construction & Materials 6,562.90 +1.97%

Electricity 7,687.14 +1.84%

Industrial Engineering 13,433.57 +1.46%

Bottom performing sectors so far today

Fixed Line Telecommunications 1,265.44 -1.98%

Media 7,056.93 -1.86%

Real Estate Investment Trusts 2,510.76 -1.34%

Oil & Gas Producers 3,543.47 -1.33%

Mobile Telecommunications 2,492.95 -1.22%