The FTSE 100 opened lower on Thursday as profit warnings, mixed corporate updates, and weak global cues weighed on sentiment. The index slipped 28 points to 10,019, with selling pressure in retail and mining stocks, while select defence and aerospace names offered support.
BAE Systems gained 5.97% to £2,041, its growth was primarily driven by increased military budgets. Similarly, Rolls-Royce Holdings' shares rose by 1.79% to £1,281.50, continuing company's recent positive performance based on the long-term demand for air travel and performance measures in aerospace.
Babcock International Group advanced 1.80% to £1,467, and Endeavour Mining increased 1.17% to £3,972, backed by precious metals market stability.
In contrast, Associated British Foods sank 10.48% to £1,925.50, being the biggest loser of the day during the early trade.
Next declined 0.84% to £14,160, Antofagasta's share price decreased by 2.27% to £3,310, and Spirax Group's stock also fell by 1.08% to £6,875.
Ashtead Group also faced a drop by 1.32% to £5,402. The owner of Primark cautioned that the company's earnings could decline after the Christmas trading period where sales did not meet expectations.
Tesco today sweetened profits guidance after reporting a strong trading performance over the Christmas period.
Sales in the UK rose by 3.2% over the six weeks to 3 January and by 3.7% across its most recent 19 week trading period.
It expects to deliver 2025/26 adjusted operating profit at the upper end of the £2.9 billion to £3.1 billion guidance range issued in October.
Marks & Spencer reported weaker fashion, home and beauty sales in the 13 weeks to 27 December, offset by a strong performance in food.
The like-for-like decline of 2.9% reflected reduced footfall and impact on stock data and management following the cyber incident earlier in the year.
Sales at Greggs jumped in the final-quarter of the year, sales rose by 7.4%, as the opening of 207 new shops last year led to a net gain of 121 new sites.
“We made good progress in 2025, in a challenging year where subdued consumer confidence impacted the food-to-go market,” Roisin Currie, chief executive, said.
Also Read: AI-Powered Trading Strategies: How Algorithms Are Shaping 2026 Markets
The Dow Jones Industrial Average declined by 0.9% and the S&P 500 index dipped 0.3%, both saw record closes in the previous session.
The Nasdaq Composite rose 0.2%. With Asia markets also under pressure, the FTSE 100 index is seen opening about 0.4% lower this morning.
The price of Brent Crude has steadied at $60.12 a barrel, while gold is down by about 0.7% at $4421 an ounce.