Regency View:

UK Sector Snapshot

Three big sector themes have re-emerged during the last three sessions, these are:

1. Strength in Metals & Mining –fuelled by a weak US dollar

2. Weakness in Banking – driven by low interest rates and a sharp increase in bad debt

3. Weakness in Oil & Gas – whilst crude prices have been relatively stable during the summer, prices are still 34% below their Jan highs due to a sharp contraction in global economic growth and the inability of OPEC to restrict supply.  

Whilst we are already long Fresnillo, we will more than likely look to add to these sector themes in the UK market should the correct technical setups present themselves.

FTSE 100 Key Sector Snapshot