Sector movers: Barclays paces gains in lenders' shares

20th Feb 2024 18:02

(Sharecast News) - Lenders' shares paced gains on Tuesday on the heels of Barclays's full-year numbers.

Although Barclays disappointed with its full-year profit before tax and dividend per share, investors hailed its larger-than-expected share buyback programme and new medium-term financial targets.

Included among the latter was guidance for at least £10bn of capital returns to shareholders over the following three years.

Barclays's shares surged back to their levels of mid-2023 as a result while boosting rivals' share prices as well.

As an aside, in the background there was some market commentary to be seen regarding the possibility that official interest rates in the U.S. might yet rise further.

Fed funds futures were still pricing in three 25 basis point rate cuts in the Fed's target range over the course of 2024.

But options markets showed that some traders were now taking out small hedges - just in case.

On that note, on 16 February former U.S. Treasury Secretary, Lawrence Summers, told Bloomberg TV there was perhaps a 15% chance that the Fed's next move would in fact be a rate hike.

Industrial miners were again a drag on the FTSE 350 amid soft investor sentiment towards China.

Investors were also reacting to the latest results from Anglo American's Kumba Iron Ore and BHP.

However, Antofagasta was a bright spot on the back of its latest full-year results.

Top performing sectors so far today

Banks 3,658.83 +1.82%

Gas, Water & Multiutilities 5,998.86 +1.68%

Beverages 23,422.74 +0.83%

Electricity 9,573.39 +0.78%

Retailers 3,871.66 +0.73%

Bottom performing sectors so far today

Industrial Metals & Mining 5,949.04 -2.55%

Automobiles & Parts 1,309.51 -2.48%

Real Estate Investment & Services 2,207.77 -1.36%

Oil, Gas and Coal 8,373.38 -1.13%

Pharmaceuticals & Biotechnology 20,601.40 -1.10%