Sector movers: Interest rate sensitive issues drag on wider market

(Sharecast News) - Real Estate and Homebuilders paced losses on the stock market after the bank holiday, as investors waited on the Bank of England's interest rate decision two days later. Investors were also waiting on the release of the US Consumer Price Index for April due out the next day.

Commenting on the BoE's likely decision, economists at Bank of America believed that the Monetary Policy Committee would go ahead with another 25 basis point rate hike to 4.50%.

Nonetheless, in their view further hikes after Thursday's decisions would be contingent on upside surprises on inflation.

Going the other way, IAG paced gains among Travel & Leisure name.

Boosting the carrier's shares, analysts at Liberum lifted their target price from 240.0p to 350.0p.

"Supply chain bottlenecks constrain the industry's ability to add excess capacity, underpinning both strong unit revenue trends and our optimism on the outlook," they said.

Industrial miners also headed higher despite data published on Tuesday showing that Chinese imports declined at an annual rate of 7.9% in April (consensus: -0.2%).

"Chinese exports are likely to slow in the coming months, in view of global weak demand," said economists at Pantheon Macroeconomics.

"The global outlook is darkening, with further American bank failures likely to hit credit creation in the U.S. and German factory orders collapsing."

Top performing sectors so far today

Travel & Leisure 7,745.20 +1.72%

Media 9,667.27 +1.24%

Leisure Goods 24,480.32 +0.46%

Industrial Metals & Mining 6,451.57 +0.42%

Investment Banking and Brokerage Services 13,325.33 +0.38%

Bottom performing sectors so far today

Real Estate Investment Trusts 2,250.94 -3.10%

Real Estate Investment & Services 2,284.53 -2.54%

Chemicals 11,464.73 -2.34%

Industrial Engineering 14,467.24 -1.91%

Household Goods & Home Construction 11,774.88 -1.90%