Sector movers: Defensives pace gains on Friday, but after very strong week for stocks

(Sharecast News) - Defensives and interest rate sensitive areas of the market paced gains at the end of the week as softer-than-expected readings for US inflation dragged further on traders' expectations for the pace of monetary policy tightening across the Pond in the US. Note should be all be taken that while the FTSE 100 added just over 1%, handicapped as it was by the rally in sterling, the second-tier index finished 4% higher despite Friday's dip.

A 75 basis point interest rate by the US central bank when it next met on 2 November was still seen as the most likely outcome by Fed funds futures with the odds being put at 82.0% - but only just.

Precious metals miners came under a bit of pressure as the US dollar bounced back, in what appeared to be what technical analysts call a 'throwback' to previous resistance, but now technical support, having broken out of a downtrend channel during the previous week in the case of euro/dollar.

Indeed, the pound benefitted from that weakness in the US dollar on Friday, in turn capping any upwards momentum on the top-flight index.

Top performing sectors so far today

Pharmaceuticals & Biotechnology 19,261.10 +1.64%

Construction & Materials 6,449.15 +1.48%

Electricity 9,417.17 +1.43%

Telecommunications Service Providers 2,461.76 +1.18%

Personal Care, Drug and Grocery Stores 3,888.82 +1.06%

Bottom performing sectors so far today

Precious Metals and Mining 9,303.97 -3.29%

Banks 2,863.05 -2.76%

Personal Goods 29,103.24 -2.48%

Industrial Metals & Mining 6,514.03 -2.42%

Leisure Goods 16,174.72 -2.26%