RE: Over 10% in 2 days11 Nov 2022 18:01
From Alliance News -
The risk-on mood sparked by the CPI print saw a pivot away from defensive stocks, which are often large constituents of the FTSE 100 index by market cap. Defensive stocks are companies that see constant demand for their products and services, and tend to fare well during an economic downturn.
Many such stocks also earn in dollars, and are hindered by a stronger pound.
Pharma stocks AstraZeneca and GSK were down 2.3% and 6.0%. Sin stocks like tobacco firms Imperial Brands and British American Tobacco fell 4.8% and 2.6% respectively, while alcoholic beverage company Diageo fell 2.6%. Defence firm BAE Systems lost 7.9%.
Utilities are also considered defensive stocks, with SSE down 2.5%, while United Utilities and National Grid lost 1.6% and 1.9% respectively.