Sector movers: Banks, aerospace lead losses

Energy-related stocks continued to retreat as crude oil futures extended their recent leg lower on the heels of reports of increasing exports out of Libya and Nigeria.

West Texas Intermediate dropped 2.05% to $43.01 per barrel while Brent futures retreated 1.52% to $45.88.

On 14 September, Libya´s state-owned oil company lifted curbs on sales of crude from three of the country´s ports: Ras Lanuf, Es Sider and Zueitina, potentially unlocking as much as 300,000 barrels a day in production, according to Bloomberg.

In parallel, Exxon Mobil was said to be prepared to restart exports of Qua Iboe crude, which in 2015 saw overseas sales of 340,000 barrels a day.

Banks were close behind after the US Department of Justice proposed that Deutsche Bank pay $14bn to settle claims related to its sales of residential mortgage backed securities before the start of the last financial crisis.

The news sent shares in the German lender more than 8% lower and attracted attention to the potential need for greater provisions at the likes of RBS.

"Tit-for-tat of fines between European and US regulators could mean the eventual figure is higher than Deutsche Bank could otherwise have hoped for," CMC Markets´s Jasper Lawler said in a note to clients.

“It just goes to show that we’re still dealing with the same old headwinds: this low-interest rate environment, which will go on for a while, and the regulatory scrutiny,” Lawler also said.

A debt downgrade out of Standard&Poor´s on BAE Systems accounted for the selling pressure in the aerospace and defence sector.

News that Apple´s iPhone had sold already sold out, due in part to a lack of supply, continued to push shares of the iconic manufacturer sharply higher, along with those of its main suppliers such as London-listed Laird.

Pharma and Biotechnology continued its recent run of gains.

Top performing sectors so far today
Industrial Metals & Mining 1,358.14 +5.27%
Technology Hardware & Equipment 2,153.81 +3.78%
Real Estate Investment & Services 2,445.54 +1.41%
Pharmaceuticals & Biotechnology 14,603.35 +1.27%
Industrial Transportation 3,077.07 +1.00%

Bottom performing sectors so far today
Oil Equipment, Services & Distribution 14,564.58 -1.32%
Banks 3,535.69 -1.30%
Aerospace and Defence 4,536.94 -1.17%
Life Insurance 6,856.31 -0.87%
Automobiles & Parts 7,371.92 -0.82