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Sector movers: Dovish Fed and dip in US dollar feed strength in oil services and miners

By Alexander Bueso

Date: Wednesday 10 Jul 2019

Sector movers: Dovish Fed and dip in US dollar feed strength in oil services and miners

(Sharecast News) - In his semiannual Monetary Report to the House Financial Services committee, Jerome Powell outlined how weak economic growth overseas and uncertainty around trade might negatively impact the US even as inflationary pressures were limited.
Traders had been wary that he might dial back on recent dovish signals from some Fed officials following the trade truce recently struck between Washington and Beijing and on the back of the most recent strong monthly US jobs report.

But in the event, Powell did not appear to do so.

Against that backdrop, as of 1619 BST the US dollar spot index was retreating by 0.32% to 97.18 and the Bloomberg commodity index was ahead by 1.29%.

Front month Brent crude oil futures were especially strong, rising by 2.98% to $66.07 a barrel on the ICE.

Also providing a boost to the oil price were the latest weekly inventory statistics from the US Department of Energy, which revealed a 9.5m barrel drop from the week before, even as the domestic crude output edged higher.

Copper prices were higher alongside, with the September contract on COMEX adding 2.17% to $2.6820 a pound.

Top performing sectors so far today

Oil Equipment, Services & Distribution 10,099.50 +2.08%

Food & Drug Retailers 3,970.36 +0.91%

General Retailers 2,076.58 +0.54%

Mining 20,263.68 +0.46%

Household Goods & Home Construction 16,072.48 +0.37%

Bottom performing sectors so far today

Software & Computer Services 2,296.19 -2.59%

Automobiles & Parts 6,181.41 -2.11%

Chemicals 13,195.66 -1.79%

Mobile Telecommunications 3,007.33 -1.33%

Gas, Water & Multiutilities 4,713.40 -1.17%

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