Sector movers: Defensives up, oil and industrials down
Domestic telecoms, water and electricity companies were sectors on the front foot as the week started, while industrials and oil-associated stocks were in the red.
Defensive stocks benefitted from the risk-off mood, with bond proxy companies also perhaps benefiting from US bond markets being closed for the Columbus Day holiday.
"Stocks could trade lower again this week as portfolio rotation out of equities into fixed income accelerates which could negatively impact global markets," said market analyst Stephen Innes at Oanda.
"Blue chips have been trading pretty badly ever since US yields breached multi-year levels of resistance last Wednesday. Indeed, this ongoing carnage in the fixed income market combined with negative risk sentiment could shoot volatility through the roof forcing markets into a defensive posture."
Russ Mould, investment director at AJ Bell, said the recent shift in the momentum in US 10-year Treasury yields could be heralding a change in the market’s mood music, with some subtle indications of a decrease in investor risk appetite and a growing preference for assets that are perceived to be safer, such as developed market equities and companies with either strong earnings momentum, sound finances and a well-covered dividend yield.
"There are few signs of out-and-out risk aversion (such as a dash into defensive stocks, bonds or cash) but investors must stay alert, especially if government bond yields keep rising (and therefore prices keep falling), especially after a near-decade long bull in most asset classes,” he said in a note last week.
Retailers were higher on the news that French Connection's founder wants to sell his 42% stake in the clothing chain, with rival Next topping the leaderboard. Marks & Spencer was boosted by a raft of appointments to strengthen its food arm.
On the downside, with trade worries doing the rounds again, were auto and electronic parts and industrial engineers.
Automotive parts manufacturers around the world are anxiously awaiting a Washington decision over whether to impose blanket 25% tariffs on foreign cars and vehicle components.
Auto parts supplier TI Fluid Systems, GKN owner Melrose and Rolls-Royce were among the big fallers on the FTSE 100.
Oil majors BP and Shell and the oil services sector were mostly in the red as oil prices eased off as Washington indicated it could grant waivers to Iran sanctions.
"There also seems to be suggestions that Saudi Arabia and Russia are already starting to plug the gap from the lost Iranian output, although there remain doubts about the extent to which the Kingdom can offset," said Oanda. "Last week’s major US inventory build is also a factor keeping a lid on prices right now. But pressure seems tilted to the upside until we get a clearer idea of what the picture looks like by year-end in terms of the Iran sanctions and OPEC’s response.”
Top performing sectors so far today
Fixed Line Telecommunications 2,685.35 +1.34%
Gas, Water & Multiutilities 4,792.65 +1.18%
Electricity 6,900.18 +0.70%
General Retailers 2,268.12 +0.70%
Tobacco 39,191.28 +0.67%
Bottom performing sectors so far today
Automobiles & Parts 8,872.54 -8.58%
Electronic & Electrical Equipment 6,448.71 -3.83%
Industrial Engineering 12,224.14 -3.27%
Oil Equipment, Services & Distribution 15,229.83 -2.44%
Mobile Telecommunications 3,499.35 -2.43%
Market Movers
FTSE 100 (UKX) 7,258.21 -0.82%
FTSE 250 (MCX) 19,739.01 -0.90%
techMARK (TASX) 3,393.30 -1.19%
FTSE 100 - Risers
Next (NXT) 5,462.00p 2.28%
SEGRO (SGRO) 621.10p 1.92%
BT Group (BT.A) 234.15p 1.76%
Centrica (CNA) 153.10p 1.73%
Marks & Spencer Group (MKS) 287.70p 1.41%
Severn Trent (SVT) 1,837.00p 1.38%
United Utilities Group (UU.) 708.60p 1.37%
Smurfit Kappa Group (SKG) 2,850.59p 1.23%
Whitbread (WTB) 4,597.00p 0.77%
easyJet (EZJ) 1,217.60p 0.75%
FTSE 100 - Fallers
Halma (HLMA) 1,370.00p -4.60%
Melrose Industries (MRO) 183.65p -4.22%
Ashtead Group (AHT) 2,219.00p -3.61%
Rolls-Royce Holdings (RR.) 927.60p -3.40%
Coca-Cola HBC AG (CDI) (CCH) 2,381.00p -2.74%
Vodafone Group (VOD) 156.00p -2.63%
NMC Health (NMC) 3,200.00p -2.62%
GVC Holdings (GVC) 898.53p -2.55%
Reckitt Benckiser Group (RB.) 6,620.60p -2.47%
Croda International (CRDA) 4,914.00p -2.23%
FTSE 250 - Risers
Vivo Energy (VVO) 124.04p 4.94%
Fisher (James) & Sons (FSJ) 1,884.00p 3.63%
AA (AA.) 100.95p 3.33%
Millennium & Copthorne Hotels (MLC) 526.00p 3.14%
Clarkson (CKN) 2,825.00p 2.54%
Greencore Group (GNC) 204.20p 2.13%
Mediclinic International (MDC) 452.20p 1.92%
Stobart Group Ltd. (STOB) 241.00p 1.90%
Dixons Carphone (DC.) 157.50p 1.61%
Shaftesbury (SHB) 902.00p 1.58%
FTSE 250 - Fallers
TI Fluid Systems (TIFS) 219.60p -8.50%
RPC Group (RPC) 768.70p -5.52%
Electrocomponents (ECM) 697.40p -5.24%
Lancashire Holdings Limited (LRE) 557.00p -5.11%
Cranswick (CWK) 3,204.02p -5.04%
RHI Magnesita N.V. (DI) (RHIM) 4,190.00p -4.77%
Hastings Group Holdings (HSTG) 238.20p -3.95%
Rotork (ROR) 316.90p -3.85%
IP Group (IPO) 121.18p -3.83%
Weir Group (WEIR) 1,693.50p -3.81%