Sector movers: Global rally lifts most ships, except auto sector

Only six FTSE 100 companies finished in the red on Tuesday in what Joshua Mahony, senior market analyst at IG, called a "remarkably well distributed" rally, helped by a dramatic drop in the pound.

Tobacco and personal goods sectors as well as being defensive, derive most of their earnings overseas, so would benefit from the weaker pound.

BP led the oil & gas producer's sector higher after its fourth-quarter results impressed.

The numbers "paint a picture of a company operating above expectations across all of its businesses", said Michael Hewson at CMC Markets, even though the retreat in oil prices from the previous peaks saw profits decline slightly compared to the preceding quarter, however they were still well above the levels of a year ago.

While the acquisition of BHP Billiton’s shale assets for $10bn contributed to net debt levels rising to a record $44.1bn, giving it a net gearing of 30.1% just above managements 20-30% range, Hewson said investors "don’t appear too concerned about this" as BP management seem confident that oil prices will stay above the break-even rate of $50 a barrel, "which should translate into net debt levels moving back down again over the course of 2019".

Food retailers were another sector climbing on good news, with Tesco and Marks & Spencer buoyed by industry sales data from Kantar Worldpanel and Nielsen that showed growth in the past few weeks, with healthy eating trends driving volumes of fresh produce up 1.5% during the last four weeks. Morrisons growth was also good, while it was also lifted by an upgrade to 'buy' at Berenberg. Sainsbury's shares were carried higher by the general rising tide, even though its recent sales growth was negative.

The auto sector was in the red, with Aston Martin and TI Fluid both down, after further gloomy news from the industry.

UK new car sales were 1.6% lower year-on-year in January, according to data from the Society of Motor Manufacturers and Traders, with demand from business and fleet buyers was particularly weak, down 33.5% and 3.4% respectively.

Top performing sectors so far today

Tobacco 33,147.07 +3.50%

Oil & Gas Producers 9,114.67 +3.25%

Personal Goods 36,369.25 +2.93%

Health Care Equipment & Services 6,950.29 +2.42%

Pharmaceuticals & Biotechnology 14,328.31 +2.40%

Bottom performing sectors so far today

Automobiles & Parts 6,971.74 -2.29%

Real Estate Investment Trusts 2,857.74 -0.48%

Food Producers & Processors 7,271.46 -0.31%

Real Estate Investment & Services 2,568.03 -0.04%