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: Higher-than -expected CPI sparks profit-taking
(Sharecast News) - Cyclical areas of the market such as Autos&Parts and interest-rate sensitive segments such as homebuilders and REITs paced losses on the FTSE 350 following the release of a worse-than-expected reading for UK consumer prices in July. The Office for National Statistics reported a 40-year high for the year-on-year rate of consumer prices in the UK of 10.1%, against 9.4% for June and economists' forecasts of 9.8%.
In response, the yield on the benchmark 10-year Gilt moved higher by 16 basis points to 2.289%, although Sterling was unmoved.
Commenting on the latter, Dow Jones Newswires cited Saxo Bank analyst John Hardy as saying that: "When rate moves don't support a currency, it is starting to behave somewhat like an emerging market currency, a dangerous signal for the sterling, where we watch for a break of [GBP/USD] 1.2000 to usher in a test of the cycle lows below 1.1800, but possibly even the pandemic panic lows closer to 1.1500."
Some City-based traders cited profit-taking for the move lower in UK stocks, but at least for the US, analysts at Bank of America cautioned that historically the S&P had never put in a final bottom while the sum of the average of the 12-month trailing price-to-earnings multiple and year-on-year CPI had been north of 20.0.
Oil and Gas on the other hand rebounded a bit, helped by the release of data in the States showing a larger-than-expected drawdown in crude oil stockpiles over the week ending on 12 August.
Top performing sectors so far today
Beverages 29,648.71 +0.97%
Tobacco 36,440.79 +0.92%
Oil, Gas and Coal 7,588.65 +0.75%
Investment Banking and Brokerage Services 13,547.53 +0.60%
Personal Care, Drug and Grocery Stores 4,233.34 +0.44%
Bottom performing sectors so far today
Automobiles & Parts 1,850.65 -4.27%
Household Goods & Home Construction 11,956.81 -4.15%
Real Estate Investment Trusts 2,844.00 -2.06%
Life Insurance 6,817.27 -2.05%
Electronic & Electrical Equipment 8,861.21 -1.88%
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.
