Sector movers: Burberry hit by China growth downgrade

18th May 2012 15:45

Fashion chain Burberry is dragging the Personal Goods sector down, ahead of its results next week.The firm, which counts China as one of its major export markets, always seems to take a hit when there is bad news about the economy of the People's Republic, and the catalyst this time is the downgrading by Goldman Sachs of forecasts for economic growth in China in the second quarter. The US investment bank now expects China's gross domestic product (GDP) to grow 7.9% in the second quarter, down from its previous forecast of 8.5%. The bank also pared its full year forecast for Chinese GDP growth to 8.1% from 8.6%.Banks are getting it in the neck because of concerns over their exposure to Greek and Spanish debt. The decision by credit rating agency, Moody's, to downgrade 15 Spanish banks did not help sentiment much.Telecoms giant BT is largely responsible for the strong performance of the Fixed Line Telecommunications sector as risk averse investors are drawn to its utility-like profile. Investors seeking a haven for their money in volatile markets are also largely responsible for the rise of the Food and Drug Retailers sector, where supermarket chains Morrisons and Tesco are the best performers.Top performing sectors so far todayConstruction & Materials 3,099.32 +0.74%Fixed Line Telecommunications 2,364.89 +0.56%Food & Drug Retailers 3,873.71 +0.13%Aeronautics and Defence NULL 0.00%Alternative Energy 8,888.00 0.00%Bottom performing sectors so far todayPersonal Goods 21,362.55 -3.05%Banks 3,353.81 -2.42%Beverages 11,033.25 -2.28%Electronic & Electrical Equipment 3,095.93 -2.11%General Retailers 1,620.89 -1.92%JH