Cyclical stocks could keep struggling as interest-rate cuts are unlikely to provide an immediate boost to a sagging economy.
These stocks, tied to economic growth, have been underperforming defensive peers in Europe since the end of May. The group is down about 3%, compared with a 4% return for defensives. Over that period, the top sectors of the Stoxx 600 include the likes of telecoms, health care and staples, while at the bottom are typical cyclicals such as miners, autos and energy.
