Industrial metals and mining shares pace advance

Investors continued to shift out of the more defensive segments of the stockmarket and towards cyclical sectors in the wake of the previous session´s unexpectedly strong US jobs feport for July.

Industrial Metals & Mining thus received a boost as steel futures climbed. Overnight, the most heavily traded iron ore contract for September on the Dalian Commodity Exchange finished the day up by 3.4% at 503 yuan, near its loftiest mark since late August 2014.

Those gains in rebar helped push stock in Evraz back closer towards its early 2015 highs.

Oil Equipment & Services companies´ shares were wanted for a second session running, against a backdrop of rising crude oil futures.

A report from the Journal indicated that the Organisation for Petroleum Exporting Countries would hold informal talks on the sidelines of an industry event in September.

Some OPEC countries, such as Ecuador, Venezuela and Kuwait wanted to make another attempt at reaching an agreement on an oil production freeze with countries from outside the cartel, such as Russia.

Russian Energy Minister Alexander Novak on Monday said he would be willing to discuss a freeze with OPEC if prices fall further.

Front month Brent crude futures advanced 2.51% to $45.41 per barrel on the ICE, alongside a gain of 2.90% to $43.05 per barrel.

Mining stocks also participated in Monday´s advance amid gains in iron ore and copper futures, despite weak Chinese import data for the month of July.

Banks were again to be seen near the top of the leaderboard as the above-mentioned US non-farm payrolls report helped to keep interest rate hike expectations in play.

Barclays was a notable advancer on the back of supportive comments out of Exane BNP, with challenger banks Shawbrook Group and Aldermore Group also clocking with solid gain on Monday.

Top performing sectors so far today
Industrial Metals & Mining 1,692.01 +2.14%
Oil Equipment, Services & Distribution 13,969.18 +2.13%
Mining 12,168.48 +1.98%
Banks 3,401.84 +1.95%
General Industrials 5,084.95 +1.58%

Bottom performing sectors so far today
Tobacco 55,927.38 -1.32%
Pharmaceuticals & Biotechnology 14,867.24 -1.19%
Fixed Line Telecommunications 4,604.22 -0.62%
Personal Goods 30,406.37 -0.62%
Household Goods & Home Construction 16,339.04 -0.56%