uploads///Performances of NE BHP RIG versus EWU

Basic Material Stocks Top UK Stock Market, EWU Surges 2.31%

Renee Blakely - Author

Nov. 20 2020, Updated 2:53 p.m. ET

Top performers

The top three stocks of the iShares MSCI United Kingdom ETF (EWU) on September 16 were Noble Corporation (NE), Transocean (RIG), and BHP Billiton (BHP). The stocks gained 6.20%, 4.59%, and 4.47%, respectively.

The above graph shows the performances of the above stocks with respect to EWU. The rise in these stocks evidently corresponds to the rise in EWU since September 15. The above stocks are related to the oil and mining industry, so these stocks gained as soon as oil saw a rise in its price.

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The consumer staple stock Unilever (UL) was named as a leader in the food, beverage, and tobacco industry group in 2015 according to the Dow Jones Sustainability Index (or DJSI) results on Tuesday, September 15. The growing middle class in developing countries renders the stock as a growth stock. September 16 saw a rise of 3.42% in the price of UL.

Stocks at the bottom

The stocks at the bottom were GW Pharmaceuticals (GWPH), Summit Therapeutics (SMMT), and Quotient (QTNT). These stocks yielded -2.29%, -1.69%, and -1.63%, respectively, on September 16. All these stocks belong to the healthcare industry.

UK markets take on the rate hike

The Office of National Statistics report on wage growth stated that the growth of wages for the period May through July was the fastest growth since January 2009 in the United Kingdom.

The UK private sector pay rose 4.4%, while the public sector rose 0.6%. This is anticipated to boost the consumer demand in the country. The British pound rose against the US dollar on September 16 based on this labor report. Wage growth is expected to pave the way for a rise in the interest rate in the United Kingdom by the Bank of England (or BoE). Investors are still waiting for the BoE to move on this.

For a detailed read on what Wall Street’s barons such as Bill Gross and Ray Dalio think about the rate hike, visit our series Ray (Dalio) of Hope for Bond Investors or (Bill) Gross Delay in Raising Rates?.


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