Sector movers: Industrial Engineering drags, Lenders gain

(Sharecast News) - Industrial Engineering was the weakest segment of the market at the start of the week amid profit-taking following the prior week's gains.

The Juneteenth national holiday in the US also meant that trading volumes were lower than usual, but many analysts appeared to be somewhat cautious.

Among them were those at JP Morgan.

In a research note sent to clients, they noted the recent broadening out in stock market gains in the US.

But they went on to add that: "If Growth style does stall, and at the same time the macro conditions are not conducive to a sustained cyclical Value bounce, then overall index levels could struggle to keep grinding higher, with traditional Defensives likely to catch a bid."

Other cyclical areas of the market that were lower on Monday included Automobiles and Part, as well as Construction and Materials names.

Worth noting, two days later the Bank of England was expected to deliver a 13th interest rate hike.

Chemicals were also a drag after JP Morgan market down its target price for shares of Croda from 6,200.0p to 5,000.0p.

The investment bank told clients that a sustained step-up in Croda's organic growth - as reflected in its premium valuation - remained "evasive"

Asia-focused lenders StanChart and HSBC on the other hand gained in the wake of positive remarks from Chinese leader Xi Jinping following a meeting with the US Secretary of State, Anthony Blinken.

Xi told state TV that it was "very good" that the two countries had made progress on stabilising the relationship and that agreements "on some specific issues" had been reached.

For his part, Blinken expressed hope that Beijing and Washington would be able to maintain better communications going forward, but added that he had no illusions about the challenges.

Of importance for investors in HSBC, financial markets were also waiting on Federal Reserve chairman Jerome Powell's testimony before the House Financial Services Panel on Wednesday.

Top performing sectors so far today

Banks 3,609.74 +0.31%

Oil, Gas and Coal 8,029.52 +0.20%

Alternative Energy 0.00 0.00%

Alternative Investment Instruments NULL 0.00%

Automobiles and related providers NULL 0.00%

Bottom performing sectors so far today

Industrial Engineering 13,776.59 -4.73%

Chemicals 9,674.78 -2.57%

Automobiles & Parts 1,813.29 -2.54%

Precious Metals and Mining 10,688.05 -2.00%

Construction & Materials 8,250.55 -1.95%