Sector movers: Miners drag as PBoC underwhelms

(Sharecast News) - Miners dragged on London's main market indices on Tuesday after the People's Bank of China delivered smaller-than-expected interest rate cuts. Overnight, the PBOC cut its one and five-year loan rates by 10 basis points to 3.55% and 4.20%, respectively.

Analysts however had reportedly been holding out for a 15bp reduction - or at least that in the case of some - in the latter.

"Despite China's policy pipe dream, sky-high government leverage and constrained fiscal capacity make it virtually impossible for lawmakers to provide any meaningful policy stimulus that could help extend the growth cycle and revive confidence in the economy and asset markets," said Stephen Innes, managing partner at SPI Asset Management.

September copper futures on COMEX only dipped 0.21% to $3.8905/lb. on the news, but August gold futures came off by 1.14% to $1,948.70/oz..

Adding to selling in the yellow metal, investors were also waiting on Fed chairman Jerome Powell's semi-annual testimony before the U.S. House of Representative Financial Services committee the next day.

Furthermore, according to Bloomberg retail sales of gold in China slowed to a 24% year-on-year pace in May, which was down from 44% and 37% for March and April, respectively.

Going the other way, Rolls Royce paced gains in Aerospace and Defence against the backdrop of the Paris Airshow and hefty order announcements out of giants Airbus and Boeing.

Top performing sectors so far today

Aerospace and Defence 6,479.34 +1.01%

Retailers 3,843.59 +0.97%

Pharmaceuticals & Biotechnology 21,521.32 +0.88%

Beverages 25,793.97 +0.60%

Tobacco 28,545.35 +0.54%

Bottom performing sectors so far today

Automobiles & Parts 1,774.63 -1.96%

Industrial Metals & Mining 6,532.31 -1.67%

Real Estate Investment & Services 2,098.79 -1.21%

Life Insurance 6,661.22 -0.88%

Chemicals 9,596.58 -0.86%