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Sector movers: Cyclicals lead at end of positive week for FTSE 350 as bargain hunters step in

By Alexander Bueso

Date: Friday 24 Jun 2022

Sector movers: Cyclicals lead at end of positive week for FTSE 350 as bargain hunters step in

(Sharecast News) - Cyclicals including Industrial Transportation and Life Insurance names paced gains at the end of a positive week for the FTSE 350.

Helping the latter was a lull in the recent downdraft in longer-term government bond yields on both sides of the Pond as investors trimmed their forecasts for interest rate increases.

In the US, talk in markets was that December might see the last rate hike by the Federal Reserve with cuts possible in 2023.

Nevertheless, one of the chief drivers behind that change in the tack was the recently more assertive Fed with another key piece of the puzzle being growing recession concerns.

Even so, oversold conditions in many asset classes meant that there might be room for near term gains, as Bank of America strategist, Michael Hartnett pointed out in a research note sent to clients, so long as a double-dip recession in the US or a 'systemic event' did not materialise.

For his part, Michael Hewson, chief market analyst at CMC Markets UK, noted how it was the more defensive areas of the stock market that had buoyed the FTSE 350 over the past week.

Further aiding bulls' case was an unexpected retreat in US consumers' inflation expectations five-years out over the course of June, as reported by the University of Michigan.

Top performing sectors so far today

Industrial Transportation 2,791.30 +4.73%

Life Insurance 6,493.06 +4.25%

Industrial Engineering 12,330.62 +4.19%

Chemicals 11,473.30 +4.16%

Personal Goods 28,050.37 +3.56%

Bottom performing sectors so far today

Alternative Energy 0.00 0.00%

Alternative Investment Instruments NULL 0.00%

Automobiles and related providers NULL 0.00%

Banking NULL 0.00%

Beverages NULL 0.00%


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