Sharecast News
03 Sep, 2020 18:08

Sector movers: Miners, Homebuilders pace losses as sentiment shifts a tad

ep logo de bank of america en la fachada de sus oficinas en los angeles
Bank of AmericaUli Deck/dpa - Archivo

Miners and Homebuilders paced fallers in the stockmarket on Thursday with a slightly worse-than-expected reading on initial weekly jobless claims acting as the apparent trigger for the selling.

However, already overnight a sharp spill lower in the share price of technology sector darling Tesla in the States had foreshadowed a possible shift in sentiment.

Linked to the above, strategists at Bank of America set a year-end 2020 target for the S&P 500 of 3,250 points, arguing that investors should begin to fade so-called 'momentum' trades in favour of valuations.

But there were more factors underlying their decision.

"We are not out of the woods, in fact quite the contrary. The months ahead of an election typically see a demonstrable increase in volatility; super accommodative policy is hitting some speed bumps - failure to pass more stimulus, proposed corporate tax hikes, etc., pose risks," they said in a research note sent to clients.

"COVID-19 second wave risk could increase amid autumn/back to school, and layoffs are accelerating."

Strategists at Barclays held similar reservations, but were more somewhat more upbeat.

"Equities had a strong run in August and could be in for a bumpier ride. Market technicals are stretched (mainly in the US), some 'concept' TMT stocks look bubbly, the bond market is getting more jittery, and US elections, virus resurgence or Brexit negotiations are potential risks.

"A pullback is thus possible, yet we stick to the view that equities will continue to grind higher over the coming months, and climb the wall of worry."

Top performing sectors so far today

Travel & Leisure 6,751.98 +1.53%

Fixed Line Telecommunications 1,272.20 +1.38%

Automobiles & Parts 2,666.06 +0.71%

Oil & Gas Producers 4,031.64 +0.68%

General Industrials 5,352.17 +0.42%

Bottom performing sectors so far today

Leisure Goods 21,661.90 -5.70%

Industrial Metals & Mining 3,215.30 -4.51%

Mining 17,741.51 -4.12%

Software & Computer Services 2,050.62 -3.60%

Household Goods & Home Construction 17,206.66 -3.27%

News Source: © 2020 Web Financial Group (UK) Limited. All rights reserved. Terms of use and legal notice

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

 

Important Legal Notice about News Sources

 

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.