Utilities (+0.8%) - Iberdrola, Engie, National Grid...
When markets falter, no one cuts off electricity or running water. Utilities remain indispensable, whatever the circumstances. They are the foundations of everyday life: we continue to heat our homes and turn on the lights, even when the stockmarket is in turmoil. As a result, the volatility of these companies' results is - theoretically - lower, even though this is not an exact science. An electricity supplier whose industrial customers produce less because of a crisis will necessarily earn less money. However, it doesn't risk seeing its revenues evaporate completely.
Food and beverages (+0.55%) - Danone, Nestlé, Diageo...
Crisis or no crisis, people will continue to eat and drink. This sector functions like a well-stocked pantry: consumers can cut back on extras, but not on staples. Nestlé and Danone aren't glamorous names, but they're reassuring - a bit like keeping a tin of preserves in the cupboard in case of hard times.
Telecoms (+0.5%) - Orange, Swisscom, Deutsche Telekom...
Even in times of crisis, you don't cancel your telephone subscription. Smartphones remain an essential link to the rest of the world - they are a work tool and even a psychological lifeline. Telecoms therefore offer a regular, almost mechanical source of income, which appeals to investors in times of uncertainty.
Healthcare (+0.4%) - Sanofi, Novartis, AstraZeneca...
Healthcare is the ultimate priority. Whether markets rise or fall, medical needs persist. The major pharmaceutical companies embody this promise of continuity. They develop treatments that are often taken over the long term or even for life. The sector seems all the more spared this morning because it had been singled out by the Trump administration as a priority target, which finally seems to have been left out of the surtaxes (subject to verification).
A Heatmap illustration shows sectoral trends. Example with a screenshot taken at 9:40am this morning (Source marketscreener.com)
However, cyclical sectors - those that depend on economic sentiment - are the first to feel the gusts:
Logistics (-6%) - AP Moller Maersk, Kuehne und Nagel, DHL...
When world trade slows down, transport and delivery giants suffer. There are fewer orders and fewer goods to ship as the logistics chain slows down. It's a sector that functions like a thermometer of the real economy - and falls as soon as the fever rises. Its profits are highly volatile: they can explode to obscene levels when world trade is booming, although turn red in the event of a crisis.
Technology (-3.3%) - ASML, Nokia, Infineon...
Tech stocks, often driven by innovation and future growth prospects, become vulnerable when interest rates rise and visibility falls. During times of uncertainty, promising the future is no longer enough: investors want concrete results, not distant dreams.
Industry (-3%) - Airbus, Siemens, Schneider...
Industrial investment is directly linked to confidence in the future. When this falters, major projects are postponed or even cancelled. As a result, order books empty out, and industrial stocks are hit hard.
Cyclical consumption (-3%) - Adidas, Hugo Boss, Compagnie Financière Richemont...
When times are tough, we literally tighten our belts. We say goodbye to the latest sneakers and luxury watches, and prioritize essentials. These brands, which are attractive in times of prosperity, become superfluous during downturns, and the markets do them no favours. They also suffer from the double whammy of supply chain overtaxation.
Banking (-2.8%) - HSBC, UBS, BNP Paribas...
Banks react to the slightest tremor in interest rates, markets or the economy. They are both barometers and sounding boards. In the event of a crisis, they become suspect: default risks, credit tensions, asset depreciation... This is far from reassuring for investors.
Commodities (-2.5%) - Rio Tinto, ArcelorMittal, Anglo American...
This sector is closely linked to global economic activity, much like the aforementioned logistics sector. When growth slows, demand for metals, energy and materials declines. And since commodity prices are extremely volatile, stocks that depend on them are on a rollercoaster ride.
