Sector movers: Recession fears hit commodity stocks, life insurers

Global recession fears led to selling on the FTSE 350 on Wednesday although the lack of any more hawkish than expected remarks out of the head of the Federal Reserve in testimony before Congress helped to stem losses.

"Indices were clearly demonstrating pre-Powell nerves this morning, as a reversal threatened to undo the bounce seen in the first two days of the week," said IG chief market analyst Chris Beauchamp.

"But the Fed chairman has avoided saying anything so far that will unnerve investors."

Combined, recession worries and Powell's speech saw longer-term government bond yields fall back on both sides of the Atlantic.

By the London close, the yield on the benchmark 10-year Gilt was off by roughly 15 basis points to 2.50%, dragging on the likes of life insurers.

But it was Industrial Metals and Oil & Gas names that were weakest due to those growth concerns.

The above saw September copper on COMEX trade down by 2.64% to $3.9415 a pound.

Brent crude oil futures were down for that same reason, shedding approximately 3% to $111.62 per barrel on the ICE and having earlier fallen by as much as 5%.

On a related note, analysts at Citi were commenting to clients how high prices were already serving to ration demand with industrial demand for gas in the UK having shrunk by 49% year-to-date.

Going the other way, interest rate sensitive Electricity and other Utilities were higher, alongside gains in Pharma.

Shares in AstraZeneca lent their heft to the upside move in the latter after analysts at JP Morgan and Deutsche Bank reiterated their 'buy' stance on the outfit.

Top performing sectors so far today

Investment Banking and Brokerage Services 11,804.88 +2.14%

Electricity 10,195.52 +2.08%

Pharmaceuticals & Biotechnology 20,768.75 +1.35%

Leisure Goods 15,376.58 +1.07%

Gas, Water & Multiutilities 5,819.08 +1.05%

Bottom performing sectors so far today

Industrial Metals & Mining 6,802.59 -4.97%

Oil, Gas and Coal 7,052.42 -3.52%

Life Insurance 6,319.49 -2.39%

Chemicals 11,163.50 -1.88%

Construction & Materials 6,032.75 -1.70%