Sector movers: Defensive stocks fall as US data boosts risk appetite

6th Jun 2014 14:17

Consumer-staple stocks were bearing the brunt of an increase in risk appetite on Friday as decent economic data from the States lifted sentiment.The all-important monthly US non-farm payrolls report, which has partly prompted investor caution over the past few sessions in London, came in ahead of forecasts this afternoon.The news sent both the Dow Jones Industrial Average and S&P 500 to new record highs shortly after the opening bell on Wall Street, helping stocks in the UK to extend gains made early on after the FTSE 100 hit a two-and-a-half week low on Thursday.Employment in the States has now exceeded the pre-recession peak of 138.4m jobs set in January 2008.Cyclical sectors were among the best performers on the back of an improved outlook for the world's largest economy. Companies in cyclical industries sensitive to the business cycle such as those in basic resources and raw materials were among the best performers. Paper and packaging group Mondi led the forestry and paper sector higher, while industrial metals groups EVRAZ and Ferrexpo also rose.Leading the downside were defensive sectors, such as food, beverages and tobacco, as investors scaled back positions in the relatively 'safer' industries that tend to hold up well in an economic downturn.Unilever, Diageo, Reckitt Benckiser and Imperial Tobacco were all registering declines.Top performing sectors so far todayForestry & Paper 12,074.69 +2.19%Industrial Metals & Mining 1,228.90 +2.18%Mobile Telecommunications 4,684.59 +1.75%Automobiles & Parts 9,204.97 +1.47%Financial Services 8,191.11 +1.34%Bottom performing sectors so far todayFood Producers & Processors 7,806.16 -1.23%Beverages 14,201.82 -0.95%Tobacco 39,911.35 -0.50%Personal Goods 23,681.09 -0.48%Health Care Equipment & Services 5,983.10 -0.32%BC