Sector movers: Oil and Gas shares catch a bid amid fear of escalation in Ukraine conflict

(Sharecast News) - Commodity plays and defensives paced gains in a mixed and volatile session in the stock market on Tuesday. Big Oil found a bid as Brent crude oil futures bounced off psychological support around the $100 per barrel price level.

Triggering the bounce was talk from German officials that an embargo on imports of Russia oil was feasible now that the country had managed to reduce its dependency on the same.

Also boosting crude oil futures were reports that Moscow might be set to cut off its exports of natural gas to Poland because of Warsaw's refusal to pay in roubles. Poland contended that would be tantamount to breaking its own sanctions and aiding the Kremlin's efforts.

Worth noting, investors were also keeping tabs on reports of violence in Transnistria, Moldova's breakaway region to the west of Ukraine.

"Inflation won't let up anytime soon as the Russian headlines suggest the war in Ukraine could see further escalations, which means inflation won't ease up and that will continue to drive central bank tightening fears," Oanda senior market analyst, Edward Moya, told clients.

Heading in the other direction, Personal Goods stocks were again lower, dragged down by losses in the likes of Burberry and Watches of Switzerland.

Banks were also unloved, as investors on both sides of the Atlantic moved out of equities and sought out the relative safety of gilts, in turn pushing government bond yields lower.

Lloyds was an exception as investors bid its shares higher ahead of the release of its quarterly results the next day.

Software and Computer Services issues were also sold, as investor sentiment took a knock from the steep selling in US technology names ahead of results from several of the sector's giants scheduled for over the rest of the week.

Top performing sectors so far today

Oil, Gas and Coal 7,182.40 +2.56%

Industrial Metals & Mining 7,153.91 +2.46%

Gas, Water & Multiutilities 6,564.66 +1.64%

Precious Metals and Mining 11,173.59 +1.64%

Pharmaceuticals & Biotechnology 21,149.82 +0.78%

Bottom performing sectors so far today

Personal Goods 26,688.87 -3.26%

Banks 2,994.81 -3.09%

Food Producers 6,163.24 -2.29%

Software & Computer Services 1,782.37 -2.17%

Leisure Goods 18,195.00 -2.15%