Utilities Up as Traders Hedge on Fed Policy - Utilities Roundup

Shares of power producers rose as traders hedged their bets on the outlook for Federal Reserve policy and Treasury yields.

The utility sector is particularly sensitive to moves in bond yields.

The impending European energy crisis could be handled in a manner similar to Japan's loss of the Fukushima nuclear plant, a major source of energy, in 2011, said analysts at brokerage Goldman Sachs Group, in a note to clients.

On the occasion, Japan saw a modest hit to economic growth, cushioning the impact partly by promoting energy efficiency among consumers.

"While replicating Japan's highly coordinated energy rationing will be difficult, we expect directionally similar responses in Europe, especially in Italy and the UK where households account for a particularly large gas consumption share," said the Goldman analysts.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

08-18-22 1718ET