FX.co ★ FTSE 100 Slips to Two-Week Low

On Tuesday, the FTSE 100 in London saw a slight decline of 0.1%, closing at 9,640—the lowest since November 25. The market's cautious atmosphere was driven by anticipation of several upcoming central bank meetings, which are expected to adopt a more hawkish policy stance through to 2026. British American Tobacco (BAT) led the downturn, dropping nearly 5% after cautioning investors that its 2026 performance may fall at the lower end of medium-term forecasts due to increasing regulatory pressures and intensified competition within the industry. Ashtead Group also saw a 0.5% decrease following second-quarter profits that did not meet analyst expectations. Conversely, defense stocks experienced a rally across Europe, with UK companies like BAE Systems rising by 2.1%, Babcock by 2%, and Rolls-Royce by 1.1%, buoyed by news of Germany's approval of a record €52 billion in defense orders. Meanwhile, Frasers Group's stock went up by 0.6% after the acquisition of the Swindon Designer Outlet, illustrating its ongoing strategy to boost property-focused investments.