Industry Sector Weekly by Lloyds TSB

The financial crisis in the euro zone stepped up this week, leading to a major sell-off in equities, despite strong earnings results, as S&P downgraded Greek sovereign debt below investment grade and also downgraded Portugal and Spain.

Greece weighed heavily on the market

The financial crisis in the euro zone stepped up this week, leading to a major sell-off in equities, despite strong earnings results, as S&P downgraded Greek sovereign debt below investment grade and also downgraded Portugal and Spain. The threat of contagion, however, means that a more comprehensive package to support Greece is likely to be unveiled. This, along with the FOMC statement this week which sounded a tad more positive regarding economic prospects but still reiterated that rates would remain “exceptionally low” for an “extended period”, helped put a floor on equity prices. The Personal & Household Goods sector underperformed over the week, declining 3.5%, while Food & Beverage and Health Care were more resilient, falling by less than 1% and 2% respectively.

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