Industry Sector Weekly by Lloyds TSB

Sector news this week was less influenced by eurozone concerns and negative news headlines last week, but instead reacted positively to strong ISM non-manufacturing survey results and better than expected jobless claims in the US Oil & gas dominates this week

Sector news this week was less influenced by eurozone concerns and negative news headlines last week, but instead reacted positively to strong ISM non-manufacturing survey results and better than expected jobless claims in the US, which helped to reaffirm confidence in the recovery of the global economy. However, payrolls for May were slightly weaker than expected, denting confidence built up earlier in the week. The Stoxx 600 was up 0.32% for the week in afternoon trading, with the healthcare a key out-performer, up 3.39%, bolstered in part by indication that a weaker euro is helping to increase export earnings. Oil & gas was down, largely on concerns around the spill in the Gulf of Mexico and the impact of the moratorium on off-shore drilling announced by President Obama will have on long term exploration and production costs in the industry. Banks remained the weakest performing sector this week, down 1.96% and 15.67% year to date, weighed down by overall concerns around regulation and conditions within the eurozone. Travel & leisure remains the strongest performer, up 11.89% year to date.

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