FTSE 100 FINISH LINE 9/12/25
The UK's flagship FTSE 100 edged slightly lower on Tuesday, as gains in defence stocks offset a decline in British American Tobacco (BAT) shares following a pessimistic growth forecast. Global markets adopted a cautious stance ahead of the Federal Reserve's monetary policy decision on Wednesday. With mixed economic data and dovish signals from some Fed officials, traders largely anticipate a 25-basis-point interest rate cut. Domestically, the Bank of England is also expected to reduce rates in its upcoming meeting amid signs of a softening labour market and slowing inflation. On the consumer front, Barclays reported a 1.1% year-on-year drop in UK credit and debit card spending in November, the sharpest decline since February 2021 during the pandemic. Meanwhile, the British Retail Consortium (BRC) revealed that spending at major retailers grew by just 1.4% last month compared to the prior year, the slowest growth since May.
Shares of BAT fell 2.9% after the company, known for its Dunhill brand, warned that its 2026 performance would likely hit the lower end of its mid-term targets. Regulatory hurdles and fierce competition in the U.S. vaping market continue to weigh on its performance, despite robust growth in other areas. Conversely, defence stocks across Europe saw gains after a Bloomberg News report indicated German lawmakers are set to approve record-breaking procurement contracts worth €52 billion. BAE Systems rose 2.3%, while Rolls-Royce inched up 0.5%. In corporate developments, Unilever announced plans to consolidate its shares, issuing eight new shares for every nine existing ones, following the demerger of its Magnum ice cream brand. Man Group shares climbed 3.5% after J.P. Morgan upgraded the hedge fund to "overweight" from "neutral." Additionally, Moonpig, a British greeting card retailer, saw its stock rise 3.3% after reporting strong interim results with robust profit and sales growth.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bearish
Weekly VWAP Bearish
Above 9720 Target 9763
Below 9700 Target 9550
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!