FX.co ★ UK Stocks Close Muted

The FTSE 100 in London concluded Tuesday almost flat at 9,642, as investors awaited the Federal Reserve's upcoming policy decision on Wednesday. The newly publicly listed Magnum Ice Cream Company saw its shares fall by 3.7%, emerging as the leading decliner. This comes as several investment banks began to evaluate its future prospects. JP Morgan assigned the company a ‘neutral’ rating with a target price of €14, citing short-term challenges. They mentioned that while the stock is fairly valued against its competitors, it "has yet to establish its credibility as a publicly traded entity." In contrast, WPP experienced a significant rise of 6.3% after reports surfaced of the advertising powerhouse securing a substantial government contract valued at approximately £2 billion. Also witnessing gains were defense firms BAE Systems and Babcock, both up by 2.1%, aligning with their European counterparts. This positive movement followed news suggesting Chancellor Friedrich Merz is set to approve an unprecedented €52 billion in defense contracts.