Sector movers: Banks gain on China rate-cut speculation

Banking stocks were in demand on Tuesday on the back of reports that China could move to cut interest rates in an effort to combat a slowdown.An article in the China Securities Journal suggested that the People's Bank of China could reduce interest rates to reduce the debt burden on companies. Meanwhile, a cut in the reserve requirement ratio (RRR) "will help sustain an eased monetary environment", the paper said. This move would help free up funds that banks have to set aside and spur loan growth. The last time the RRR was reduced was in May 2012."There is room for lowering interest and reserve ratio in the second half," the paper said.Global banking giant HSBC, a business heavily exposed to the Chinese region, was among the best performers of the day on Tuesday, lifted higher by Citigroup which raised its rating to 'buy' following the stock's recent underperformance. Emerging markets-focused Standard Chartered was also higher, joined by Lloyds, Barclays and Royal Bank of Scotland.Top performing sectors so far todayForestry & Paper 8,897.14 +3.06%Fixed Line Telecommunications 3,678.48 +2.70%Banks 4,891.44 +2.50%Insurance (non-life) 1,759.07 +2.05%Electricity 9,575.99 +1.76%Bottom performing sectors so far todayIndustrial Metals & Mining 1,359.43 -0.95%Food & Drug Retailers 4,321.76 -0.23%General Retailers 2,378.88 -0.16%Personal Goods 22,175.51 -0.06%Construction & Materials 3,637.31 -0.03%