Sector movers: Banks jump, defensives sold

The banking sector, a category typically sensitive to the outlook for the global economy - and more recently, developments in the Eurozone - was the best performing sector today, after comments from European leaders over 'fiscal union' helped to ease fears over the sovereign debt crisis.German Chancellor Angela Merkel told the Bundestag this morning: "Anyone who, a few months ago, had said that at the end of the year 2011 we would have taken very serious and concrete steps towards a European stability union, a European fiscal union, for introducing such drastic intervention, would have been considered crazy. Now, this is exactly what's on the agenda. We're almost there" [translation by the Guardian]. Meanwhile yesterday, French President Nicolas Sarkozy insisted on the need for governmental convergence amidst the Eurozone members. "There can't be a single currency without (these) economies heading towards more convergence." Banks across the continent were making solid gains on Friday, while Barclays, Lloyds and Royal Bank of Scotland were among the best performers in London, all rising at least 6%. RBS announced today that it is to sell its tenanted pub business of 918 pubs to the Scottish and Newcastle Pub Company (S&NPC) for £418m. Defensive stocks were being sold off today, as risk appetite increased. As such, the electricity and utilities sectors were out of favour.SSE, Severn Trent, National Grid and Centrica took up the top spots on the FTSE 100 fallers list before the close of trade.BCTop performing sectors so far todayBanks 3,481.53 +4.26%Life Insurance 3,849.27 +3.04%Forestry & Paper 5,001.14 +2.95%Oil Equipment, Services & Distribution 22,617.12 +2.82%Industrial Transportation 2,158.36 +2.72%Bottom performing sectors so far todayElectricity 8,050.97 -3.66%Gas, Water & Multiutilities 4,604.08 -2.46%Fixed Line Telecommunications 2,149.74 -1.17%Food & Drug Retailers 4,694.85 -0.69%Food Producers & Processors 5,496.82 -0.51%