Regency View:

UK Sector Snapshot

The two-day two-hundred-point upswing that we’ve just witnessed in the FTSE, is a reflection of a broad uptick in risk appetite.

Whilst this should be seen as a positive for risky equities, it leaves the game of sector strength and weakness somewhat in limbo.

The strong sectors of Metals & Mining and Housebuilding & Construction are consolidating their recent gains, while weaker sectors like Banking and Oil & Gas are bouncing from their lows, the latter forming the early signs of a ‘double bottom’ reversal pattern.

In the absence of short-term sector momentum, we will continue to drill down to the stock level to hunt for the highest probability setups.

FTSE 100 Key Sector Snapshot