Sector movers: Stocks rattled by US political uncertainty
Political uncertainty was the main driver behind share price movements on either side of the Atlantic at the weekend.
Aerospace and Defence
10,597.35
17:09 25/04/24
Aviva
458.50p
16:40 25/04/24
BAE Systems
1,320.00p
16:45 25/04/24
Food Producers & Processors
8,081.88
17:09 25/04/24
FTSE 100
8,078.86
17:14 25/04/24
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Life Insurance
5,638.37
17:09 25/04/24
Mining
10,403.74
17:09 25/04/24
Randgold Resources Ltd.
6,546.00p
17:00 28/12/18
Rolls-Royce Holdings
405.70p
17:15 25/04/24
Tate & Lyle
634.00p
17:05 25/04/24
Stateside, a tracking poll from Real Clear Politics showed the Democratic party presidential hopeful holding on to a slim 1.7 percentage poll lead over her main rival, Donald Trump.
Nonetheless, investors appeared to be in scant mood to take risks ahead of the 8 November election, with strategists at Citi pegging the odds of a Trump upset at a non-negligible 25%, which might result in a sell-off in the S&P 500 of between 3% to 5%.
Faced with that prospects and despite the generally upbeat reactions from economists to the October US non-farm payrolls report, investors headed for the relative safety of sovereign debt.
Indeed, the recent High Court decision regarding Parliament's right to oversee the Brexit process - and the resulting jump in the pound - surely made the calculus that much easier for investors.
Thus, as of 1618 GMT the yield on the benchmark 10-year Gilt was down by five basis points to 1.15% alongside a 0.56% rise in the value of the pound against the Greenback.
Going the other way, and leading gains on the stockmarket, was the classic defensive play, electricity stocks, namely SSE.
However, a stronger pound also meant that Tate&Lyle's US dollar denominated earnings were now that much less valuable, although it failed to leave a dent in the likes of BAE Systems and Rolls Royce.
Unsurprisingly, it was the main drag on Food Producers' shares.
To take note of perhaps, in the previous session Morgan Stanley upped its view on BAE Systems to 'overweight', telling clients "upside risk from tank opportunities; pension, Saudi and regulatory risks as overdone; and an undemanding valuation". As well, if there was one thing US Republicans could be counted on for it was defence spending.
Likewise, lower yields is a negative for so-called 'bond proxies', such as UK life insurers.
However, shares of precious metals miners failed to participate in the gains - albeit only slight - in the price of gold, with December gold futures on COMEX up by just 0.07% to $1,304.0/oz.
"Heavy losses for key sectors such as banks and miners, including previous high-flyers in gold and silver mining, demonstrates just how far the risk-off attitude runs. With the US election now just days away buyers are nowhere to be seen, since only the most foolhardy would be trying to buy the dip at present; such a move would be a classic example of the proverbial ‘picking up pennies in front of a steamroller’. Gold is holding on above $1300, after a rapid move higher over the past week. If we get further signs that Trump is edging closer to the White House, this rally could have further to run," said Chris Beauchamp at IG.
Top performing sectors so far today
Electricity 9,192.57 +0.51%
Aerospace and Defence 4,407.90 +0.04%
Bottom performing sectors so far today
Food Producers & Processors 7,623.63 -3.37%
Forestry & Paper 16,598.66 -2.78%
Life Insurance 6,697.02 -2.74%
Health Care Equipment & Services 7,078.62 -2.61%
Mining 13,260.00 -2.61%