Sector movers: Defensive issues reel as bond yields back-up

6th Oct 2016 19:13

(ShareCast News) - Cyclicals gained while defensive issues fell back in an overall down market ahead of the release of September´s US non-farm payrolls report the next day.Acting as a backdrop, developed world sovereign bonds dropped to their lowest levels since July as traders continued to react to recent remarks from officials at the European Central Bank and Bank of Japan pointing to a shift away from negative interest rates.On a positive note, shares of lenders reacted positively to those moves, as Fed funds futures continued to creep higher.At last count, Fed funds futures were assigning a 63.9% probability that the US central bank would hike rates by 25 basis points at its 14 December meeting.The above aside, shares in GKN and Smith and Nephew drove moves in their respective sectors.Shares in the aerospace and automotive engineer received a boost after analysts at HSBC initiated their coverage of the company´s stock at 'buy', highlighting its world-class technology, not withstanding its lower-than-sector marginsand large pensions liability - despite which the shares still looked 'cheap' to them.Smith & Nephew on the other hand was weighed down by negative views from analysts at Berenberg who downgraded the stock from 'buy' to 'hold', saying they had turned more cautious about the outlook for the company´s organic revenue growth, margins and earnings growth.Top performing sectors so far todayForestry & Paper 18,052.80 +0.90%Automobiles & Parts 7,785.76 +0.54%Banks 3,695.95 +0.31%General Industrials 5,420.67 +0.30%Oil Equipment, Services & Distribution 16,399.69 +0.30%Bottom performing sectors so far todayHealth Care Equipment & Services 7,556.27 -2.29%Gas, Water & Multiutilities 6,413.83 -2.15%Electricity 8,891.40 -1.96%Real Estate Investment & Services 2,422.16 -1.90%Fixed Line Telecommunications 4,276.74 -1.85%