Sector Changes: Defense rebounded towards the end of the month

UK stocks continued their recent rebound following the release of slightly weaker-than-expected US consumer spending and inflation readings.

By country Department of CommerceThe underlying PCE price index, at 0.2%, saw the smallest month-on-month gain in 2024 in April.

This came amid a monthly decline in inflation-adjusted consumer spending of 0.1%.

Commenting on the outcome of the session, IGChris Beauchamp of Chris Beauchamp said of the latest price data: “While this leaves expectations for the June Fed meeting unchanged, it at least allays some concerns that a hike is becoming more likely.”

Beauchamp also noted the readiness of NATO countries to allow Kiev to use its weapons on Russian territory and France’s decision to send military advisers to Ukraine.

“The risk of conflict spillover appears to be back on the investor agenda.”

Against this background, London’s highest index ended May 1.4% higher, with an increase of 3.8% compared to the second-tier index.

The 10-year Gilt yield ended the day off three basis points to 4.321%, while COMEX gold futures fell 0.87% to $2,345.80/oz.

Sectors that are currently performing best

Gas, water and utilities 5,620.55 +3.70%

Electricity 10,532.10 +2.10%

Recreational items 25,288.94 +2.05%

Pharmaceuticals and biotechnology 23,365.59 +1.42%

Telecommunications service providers 2,079.59 +1.04%

The lowest performing sectors so far

Food producers 8179.55 -1.96%

Construction and materials 10,546.05 -0.92%

Industrial Engineering 13,997.85 -0.86%

Personal property 15,497.62 -0.83%

Real estate investments and services 2,239.65 -0.70%