Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Sector movers: Autos and Parts, Insurance pace gains after US CPI downside surprise
(Sharecast News) - It was a classic risk-on session on both sides of the Pond on Wednesday as lower-than-expected readings on both headline and core consumer prices in the US for July stoked hopes that a peak in price gains might now be in the rear-view mirror. Automobiles as well as Non-Life and Life Insurance paced gains, alongside a jump in interest rate sensitive Household Goods and Homebuilders' shares.
Going the other way, defensives including Electricity and Pharma were all to be found at the bottom of the pile.
Longer-term Gilt yields reversed the drop seen immediately after the CPI data was released, but not Sterling, which put on 1.39% against the Greenback.
Strength in Sterling dragged on the FTSE 100 but the second-tier index ended the day up by nearly 2%.
In tandem, gauges of stockmarket volatility were sharply lower.
The falling price of petrol was responsible for the bulk of the slowdown in the headline Consumer Price Index from 9.1% year-on-year for June to 8.5% in July.
But core CPI also surprised with a 5.9% increase, which was unchanged from the prior month, but below forecasts for a rebound to 6.2%, thanks to downside surprises in core goods prices including for apparel and used cars.
Fed funds futures shifted back in the wake of the data and were left pricing in a 50 basis point interest rate hike as the most likely outcome of the US central bank's next policy meeting in September, instead of 75bp.
Economists were nonetheless cautious, telling clients that risks remained, not least from the US jobs markets or the possibility of new supply shocks.
Top performing sectors so far today
Automobiles & Parts 1,927.30 +5.34%
Non-life Insurance 3,101.38 +4.32%
Industrial Transportation 3,521.80 +4.30%
Life Insurance 6,971.63 +3.88%
Household Goods & Home Construction 12,800.95 +3.73%
Bottom performing sectors so far today
Electricity 11,028.02 -2.75%
Pharmaceuticals & Biotechnology 20,760.32 -1.93%
Gas, Water & Multiutilities 6,283.47 -1.02%
Telecommunications Service Providers 3,003.29 -0.92%
Tobacco 34,888.42 -0.71%
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
