Sector movers: Lenders' and miners' shares pace losses

12th Jun 2024 06:46

(Sharecast News) - Stocks on the FTSE 350 were in the red on Tuesday as investors waited on the result of the US central bank's policy meeting the next day.

Ahead of that policy announcement, the Office for National Statistics reported weaker-than-expected jobs data.

According to ONS, employment in the UK shrank by 139,000 over the three months ending in April (-98,000).

Average weekly earnings excluding bonuses meanwhile grew at a year-on-year pace of 6.0% in April (consensus: 6.1%).

"On balance, these data increase the risk of a move in August, although September remains our base case. Revisions, sequential pay into May, and the June CPI release all suggest a near term inflationary picture that is likely to remain sticky," economists at Citi told clients.

"Leaving the MPC in search of further assurance. However, today's data also suggest that by the time that is achieved, a material monetary loosening may be required to steady the real side of the economy. We still expect back-to-back cuts by the end of 2024."

Those figures out of the jobs market weighed on longer-term Gilt yields and in turn on lenders' shares.

Industrial miners were also weak with analysts at SP Angel citing poor demand for copper from Chinese manufacturers who were reportedly balking at the high prices for the metal.

Nonetheless, analysts at Citi were anticipating copper prices to rise further, towards $12,000 per metric tonne by the turn of the year.

Top performing sectors so far today

Leisure Goods 24,477.73 +0.39%

Automobiles & Parts 1,144.33 +0.30%

Industrial Support Services 11,204.53 +0.11%

Alternative Energy 0.00 0.00%

Alternative Investment Instruments NULL 0.00%

Bottom performing sectors so far today

Non-life Insurance 3,540.86 -2.71%

Banks 4,180.21 -2.31%

Industrial Metals & Mining 6,762.80 -1.88%

Real Estate Investment Trusts 2,303.47 -1.71%

Construction & Materials 10,186.00 -1.38%