Sector movers: Miners and utilities pace losses

Cyclicals were at the bottom of the pile on Wednesday, with Miners and interest rate sensitive utilities seeing the steepest falls.

Stoking selling in the former group, overnight Bloomberg reported that the US President had instructed his country's trade representative to raise the proposed tariff that Washington was readying on another $200bn-worth of Chinese goods from 10% to 25% with an announcement possible in the next few days.

Those tariffs were not yet a given but nevertheless led to a swift response from China, where officials warned the White House against "bullying".

Company-specific news was also impacting on the sector, with Rio Tinto's share price caving-in after the miner unveiled a record interim dividend of $2.2bn, even as it topped-up its share repurchase programme with another $1.0bn in funds.

To take note of, together with higher outlays on capital expenditures, that meant net debt was set to jump from $3.85bn in the comparable year-ago period to $5.23bn.

Gold-digger Centamin was also faring poorly.

Sentiment towards the Egypt-focused miner had soured of late, as reflected in the build-up in short positions in the 'yellow metal' of late to reach record highs.

However, analysts at UBS had a somewhat constructive view on the metal underlying Centamin's fortunes.

"Gold net positioning has fallen to the lowest level since January 2016 and now looks very lean at 13% of the all-time high. This should ultimately be supportive for gold, allowing ample space for positions to be rebuilt ahead. But for now, there is a clear lack of buying interest amid limited catalysts from the macro space for now," the Swiss broker told clients.

"The gold market needs a stronger signal and/or signs of a response from physical markets amid cheaper prices – either is unlikely until after the typical summer holiday lull. Comex volumes dipped noticeably in the first half of July, and although there's been a pick-up of late, we would expect subdued activity to resume over the next few weeks."

As for utilities, they were coming under pressure as 10-year Treasury note yields in the US hit 3.0% again.

Meanwhile, stock in Next was dragging on General Retailers after the fashion retailer said that recent hot weather had simply brought forward spending on merchandise usually purchased in August.

In Industrial Transportation, it was BBA Aviation that was on the move after the company reported an 11% fall in interim pre-tax profits to $76.2m (£58.7m) citing higher exceptional charges.

Underlying profit rose 4.5% to $140.2m as revenue increased 14% to $1.02bn and the interim dividend was lifted 5% to 4 cents a share. Free cash inflow was $57.9m higher at $114.5m.

Top performing sectors so far today

Forestry & Paper 23,843.38 +1.00%

Financial Services 10,865.05 +0.64%

General Industrials 6,951.30 +0.39%

Chemicals 16,798.66 +0.11%

Beverages 22,480.95 +0.09%

Bottom performing sectors so far today

Industrial Transportation 3,187.37 -4.64%

Mining 18,138.30 -2.65%

Gas, Water & Multiutilities 4,763.69 -2.45%

Leisure Goods 7,295.46 -2.34%

General Retailers 2,445.87 -2.17%