Sector movers: Homebuilders, Aerospace and Defence pace bounce
Household Goods and Home Construction led a bounce in the UK stock market, even as investors waited on an interest rate decision from the US Federal Reserve after Wednesday's close and another from the Bank of England the next day, together with news of a partial mobilisation of Russia's armed forces.
"The prospect of another bumper Fed rate hike hasn’t done much to deter investors today, and stocks have clawed back some of yesterday’s losses. But the rebounds of late have been weak, and are usually quickly undone by fresh declines," said IG chief market analyst Chris Beauchamp.
"Vladimir Putin's decision to go for partial mobilisation while waving his nuclear arsenal around is a serious development, but for now markets are too focused on what they hope the Fed might say. But it puts another level of support in for energy prices, signalling that recession risks will only keep on rising."
Against that backdrop, The Times reported that the new prime minister, Liz Truss, was set to announce a cut in stamp duty in the mini-budget scheduled for 23 September, in an attempt to drive economic growth.
It was also understood that the PM and chancellor Kwasi Kwarteng had been working on the plans for more than a month.
Truss believed that cutting stamp duty will encourage economic growth by allowing more people to move and enabling first-time buyers to get on the property ladder, The Times said.
Aerospace and Defence issues were also sought out on the back of the latest developments in the war in Ukraine.
Overnight, Russia's President, Vladimir Putin, announced a partial mobilisation of the country's reservists, some 300,000 according to defence minister Sergei Shoigu.
Putin also said that all options were open to defence the country's territory, in what was understood to be a thinly veiled nuclear threat.
The day before, officials in the four Ukrainian regions controlled by Moscow had fast-tracked plans for referendums on joining Russia, announcing that they would be held in coming days.
Top performing sectors so far today
Household Goods & Home Construction 10,457.09 +3.21%
Aerospace and Defence 4,714.51 +2.94%
Electronic & Electrical Equipment 8,222.43 +2.84%
Industrial Transportation 3,103.62 +2.62%
Investment Banking and Brokerage Services 12,416.84 +2.31%
Bottom performing sectors so far today
Leisure Goods 15,962.71 -9.35%
Automobiles & Parts 1,571.17 -6.44%
Travel & Leisure 5,910.36 -1.89%
Banks 3,342.17 -1.46%
Tobacco 36,514.72 -0.76%