Sector movers: Oilers gain, tobacco put out

Oil was the driving force on Wednesday after a surprise fall in US inventories, while tobacco was lightly vaporised by US regulatory factors.

The oil & producers and related support services sectors were higher as crude prices gained ground, with West Texas Intermediate futures up almost 2% to above $58 for the first time in almost two weeks.

Fresh data showed crude inventories fell again last week. Commercial oil stockpiles in the States fell by 3.9m barrels, while the market was expecting a drop of 2.655m. According to the US Department of Energy, levels were roughly 2.0% above their five-year average.

"The rally in crude looks to be back on, after a month or so of consolidation. Signs of increasing consumption are perhaps the best hope for oil, with little in the way of additional output cuts expected," said Chris Beauchamp, chief market analyst at IG.

Traders are also worried about supply, said David Madden at CMC Markets. "Sanctions on Venezuela and Iran are hurting supply, and the Saudi’s have suggested that output cuts will last until June."

Meanwhile, tobacco stocks were under pressure after US Food and Drug Administration Commissioner Scott Gottlieb announced it was making compliance policy for producers harsher, sooner, with the backing of President Donald Trump.

Gottlieb said flavoured e-cigarette sales in the US will be restricted in stores and online, and that the FDA was ending its current compliance policy on flavoured “electronic nicotine delivery system” products other than tobacco-, mint-, and menthol-flavoured and bringing forward its enforcement of pre-market review requirements.

This meant, Gottlieb said, that the FDA was putting manufacturers and retailers were "on notice that they may be subject to FDA enforcement for selling certain flavoured products without authorisation".

Manufacturers of flavoured product will be expected to comply with the requirements of retail regulations in preventing the sale of their products to minors.

Top performing sectors so far today

Automobiles & Parts 6,551.23 +2.47%

Oil Equipment, Services & Distribution 11,518.17 +2.39%

Oil & Gas Producers 8,858.82 +1.07%

Chemicals 13,751.92 +0.94%

Electronic & Electrical Equipment 7,263.67 +0.94%

Bottom performing sectors so far today

Tobacco 34,930.28 -2.87%

Leisure Goods 7,195.69 -1.37%

Gas, Water & Multiutilities 5,061.41 -0.95%

Health Care Equipment & Services 6,835.89 -0.55%

General Retailers 2,190.46 -0.54%

Market Movers

FTSE 100 (UKX) 7,160.62 0.13%
FTSE 250 (MCX) 19,175.55 0.17%
techMARK (TASX) 3,496.73 0.12%

FTSE 100 - Risers

Standard Life Aberdeen (SLA) 252.40p 3.02%
Schroders (SDR) 2,724.00p 1.83%
Wood Group (John) (WG.) 572.60p 1.78%
BP (BP.) 546.10p 1.77%
Melrose Industries (MRO) 179.95p 1.67%
Auto Trader Group (AUTO) 478.60p 1.46%
Prudential (PRU) 1,552.00p 1.44%
TUI AG Reg Shs (DI) (TUI) 767.20p 1.32%
Glencore (GLEN) 308.00p 1.32%
International Consolidated Airlines Group SA (CDI) (IAG) 539.25p 1.17%

FTSE 100 - Fallers

GVC Holdings (GVC) 535.00p -5.81%
Hikma Pharmaceuticals (HIK) 1,592.00p -3.84%
British American Tobacco (BATS) 2,985.00p -3.27%
Paddy Power Betfair (PPB) 5,570.00p -2.02%
United Utilities Group (UU.) 845.60p -1.83%
Imperial Brands (IMB) 2,585.50p -1.71%
Severn Trent (SVT) 2,029.00p -1.65%
NMC Health (NMC) 2,632.00p -1.50%
BAE Systems (BA.) 461.90p -1.24%
HSBC Holdings (HSBA) 620.90p -0.89%

FTSE 250 - Risers

SIG (SHI) 142.90p 8.18%
Premier Oil (PMO) 83.10p 7.02%
Elementis (ELM) 160.00p 5.61%
Petrofac Ltd. (PFC) 487.40p 4.70%
Aston Martin Lagonda Global Holdings (AML) 1,174.80p 4.45%
Stobart Group Ltd. (STOB) 161.00p 3.74%
Equiniti Group (EQN) 192.00p 3.11%
Hochschild Mining (HOC) 198.55p 3.01%
Bodycote (BOY) 835.50p 2.96%
Hunting (HTG) 531.00p 2.61%

FTSE 250 - Fallers

G4S (GFS) 194.70p -4.47%
Avast (AVST) 295.00p -4.21%
Metro Bank (MTRO) 826.00p -3.95%
Bakkavor Group (BAKK) 127.60p -2.60%
Capita (CPI) 118.65p -2.27%
Fisher (James) & Sons (FSJ) 2,070.00p -2.13%
Just Eat (JE.) 740.40p -1.96%
Domino's Pizza Group (DOM) 230.20p -1.92%
Quilter (QLT) 140.30p -1.92%
Intu Properties (INTU) 109.50p -1.75%