Sector movers: Loose talk sinks ships
Like the day before, it was some of the more defensive issues in the market that bore the brunt of selling despite the rout in equities worldwide, with recent slight shifts in expectations for policy tightening by the Federal Reserve in 2018 apparently triggering a sharp rise in stockmarket volatility as government bonds markets in the US, and elsewhere, came under pressure.
Similar to Monday's price action, shares of some of the major telecommunications groups also saw heavy selling, but this time it was concentrated in the mobile telecommunications space, as analysts at Credit Suisse highlighted a group of stocks it estimated had a higher than average risk profile.
In particular, they highlighted Altice, Mediclinic, Korian, Talk Talk, The AA, Premier Foods and Countrywide as companies where "the bond market therefore has an above average influence on the equity story too.
"[...] These companies are seen as most sensitive to changes in operational or cash flow performance or where rising yields may have a significant impact on the equity story."
Other London-listed names included in the broker's 26-long list of European small and mid cap stocks with above average risk profiles were: Debenhams, Devro, BBA Aviation and Greene King.
Top performing sectors so far today
Bottom performing sectors so far today
Gas, Water & Multiutilities -3.85%
Oil Equipment, Services & Distribution -3.75%
Life Insurance -3.60%
Fixed Line Telecommunications -3.19%