Sector movers: Cyclicals lead on Wednesday, but BoA-ML tactically cautious

Cyclicals paced gains on the market on Wednesday, with Miners doing best, boosted by US dollar weakness after the chief economist of the world's second most important central bank failed to show his characteristically dovish side.

That was all the more noteworthy given the recent run of weaker-than-expected data out of the euro area and the political mayhem in Rome.

Speaking in Berlin, the European Central Bank's Peter Praet left the door open to the announcement, for as soon as the following week, of the exact end-date for the ECB's asset purchases.

It was by no means a promise, but it was made abundantly clear that ECB's Governing Council was set to broach the subject.

Being somewhat impervious to the economic uncertainty lingering over markets, and the UK more generally, thanks to its business model, centred on a mix of high street, railway stations and airport locations, WH Smith sounded a confident note on its full-year outlook.

"Whilst there is some uncertainty in the broader economic environment, WHSmith serves millions of customers each week and continues to grow both internationally and in the UK," WH Smith boss Stephen Clarke told investors in a trading update.

"[...] We remain confident in the outcome for the full year."

Boosting TI Fluid Systems meanwhile (and hence the Autos&Parts space), analysts at Numis reportedly initiated coverage of the global leader in automotive fluid carrying systems with a 'buy' recommendation and a 390p target price.

"The shares have flat-lined since arriving back on the UK market as investors fret over auto exposure or electric vehicle impact. This is providing an attractive entry point," the broker said in a research note sent to clients.

"We expect delivery of results, de-levering of the balance sheet and electric/hybrid contract wins to progressively drive a re-rating."

To take note of, in the background, and despite the current up-draft in risk appetite, as recently as 1 June strategists at BoA-ML were telling clients that they remained "tactically defensive", adding that they were waiting for asset prices to force the US central bank's hand with rate-setters "pausing" in their policy tightening.

Top performing sectors so far today

Mining +2.71%

General Retailers +1.87%

Industrial Metals & Mining +1.64%

Automobiles & Parts +1.56%

Forestry & Paper +1.29%

Bottom performing sectors so far today

General Industrials -1.56%

Oil Equipment, Services & Distribution -1.46%

Tobacco -1.20%

Personal Goods -1.16%

Beverages -1.02%