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22nd Apr 2021. 2.14pm

Regency View:

UK Sector Snapshot

This month we have started to see a rotation out of aggressive sectors and into defensive sectors as concerns over the global recovery increase.

This sector rotation is to be expected given the sky-high valuations that we’re seeing in the US.

Banking stocks have fallen away with the drop in US 10-Yr treasury yields that we’ve seen during the last month. Oil & Gas stocks have also underperformed as the number of global Covid-19 cases have risen in recent weeks.

In contrast, we’re seeing a strong performance from Pharma stocks, Consumer Defensive and Utilities – signalling a rise in risk aversion among UK investors.

FTSE 100 Key Sector Snapshot

FTSE 100 Key Sector Snapshot

Disclaimer:

This research is prepared for general information only and should not be construed as any form of investment advice.