Sector movers: Travel and utility stocks gain, oil drags

Defensive issues paced gains on Tuesday, with personal goods manufacturers and gas, water and multiutilities leading the pack.

Yields on longer-dated Gilts were lower again on Tuesday as investors grew somewhat more concerned over the potential ripple effects of the tensions surrounding Deutsche Bank's finances.

Interest rate sensitive stocks typically do well when longer-dated yields, which they must compete with to attract investors' money, drop.

Also worth noting, in its first day, on Tuesday, the Bank of England's new corporate bond purchase programme was expected to focus on debt issued by utilities and industries.

Travel &Leisure shares jumped as stock in Carnival saw follow-through buying from the previous session after the company posted its third quarter results.

"To some degree, the Carnival investment case is predicated on Chinese demand building sufficiently to meet capacity growth for lower supply growth in developed markets to enable further yield improvement. The group appears to be on-track," ShoreCap analyst Greg Johnson said in a research note sent to clients.

Oil-related shares, whether those of oil services outfits or of the largest oil producers themselves, led to the downside amid inconclusive remarks out of the OPEC meeting in Algiers thus far and after Goldman Sachs lowered its forecast for the price of crude oil in the last three months of 2016.

The broker's analysts cut their forecast for the price of oil at the tail-end of 2016 following upside surprises on the production side and after greater clarity on the delivery of new projects revealed an unexpected glut was on the cards.

Oil supply would exceed demand by 400,000 barrels a day in the final three months of the year, instead of falling short by 300,000 as Goldman had previously estimated.

Hence, the broker said the price of crude oil in the fourth quarter of 2016 would be at $43 a barrel, versus a prior projection of $50.

Top performing sectors so far today
Personal Goods 31,549.11 +0.87%
Gas, Water & Multiutilities 6,640.98 +0.67%
Travel & Leisure 8,473.88 +0.46%
Household Goods & Home Construction 16,339.23 +0.41%
Mobile Telecommunications 4,947.10 +0.41%

Bottom performing sectors so far today
Oil Equipment, Services & Distribution 14,867.07 -2.46%
Oil & Gas Producers 6,899.33 -1.88%
Automobiles & Parts 7,432.71 -1.58%
Industrial Engineering 9,521.07 -1.39%
General Industrials 5,149.28 -1.36%