Sector movers: Mixed day for FTSE 350, tech stocks sag
18th Jul 2024 06:52
(Sharecast News) - UK stocks put in a mixed showing in the middle of the week as a stronger-than-expected reading on inflation tempered expectations for a September cut in Bank Rate.
That weighed on the second-tier index but also kept a lid on Sterling, hence helping out the top-flight index.
According to the Office for National Statistics, the annual rates of increase in headline and core consumer prices were unchanged in June at 2.0% and 3.5%, respectively.
Consensus had been for a dip in the former to 1.9%.
"A fall to 1.9% had been predicted but didn't materialise, putting the decision about a potential cut on 1 August finely in the balance; the odds are now around 50:50," said Laura Suter, director of personal finance at AJ Bell.
In any case, it was a mixed bag of defensive issues that paced gains on the FTSE 350 on Wednesday.
That sector composition underscored the caution on the part of investors that was on display during the session.
Notably, UK technology names were near the bottom of the pile, mirroring the very steep decline in America's tech-heavy Nasdaq Composite.
Dragging on technology was news of possible US moves to curb transfers of chip technology and equipment to China.
Worth noting, the news came close on the heels of a run up in chip stocks globally that had left them vulnerable to a sell-off.
The news was also perhaps a harbinger of the headlines that one might expect going forwards as the date of the US presidential elections neared.
Top performing sectors so far today
Personal Goods 11,954.15 +3.30%
Telecommunications Service Providers 2,044.25 +1.64%
Medical Equipment and Services 11,523.73 +1.46%
Tobacco 28,952.40 +1.42%
Pharmaceuticals & Biotechnology 22,645.80 +1.24%
Bottom performing sectors so far today
Aerospace and Defence 10,807.40 -2.15%
Leisure Goods 25,970.38 -1.76%
Electronic & Electrical Equipment 10,549.28 -1.52%
Software & Computer Services 2,452.29 -1.46%
Construction & Materials 11,515.74 -1.36%