FTSE 100 Live: Index Opens Lower as British American Tobacco Slumps; Retail Sales Disappoint and Global Markets Stay Cautious

After the opening of Tuesday's trading session, the FTSE 100 was trading on the downside. This coincides with the overall weakness in the equities market worldwide as traders await the decision of the US Federal Reserve on Wednesday. The FTSE 100 fell 9 points or 0.23% to close at 9635.9. British American Tobacco (BAT) shares led the early downward movement after they released an unfavorable guidance.

Early Price Movement Shows Varied Sentiment

WPP shares rose 1.54% to £303.10, AstraZeneca shares rose 1.39% to £13,766, and BAE Systems further increased in price by 1.36% to £1714, demonstrating a positive outlook in these three sectors: Advertising, pharmaceutical, and defense.

In addition to WPP, AstraZeneca, and BAE Systems shares, RELX (1.25%) and Rentokil gained value during the morning session, indicating resiliency across these industries as well.

Related to commodity prices and concerns about low demand from China, it impacted companies in the Miners category. Shares of Endeavour Mining fell 1.52% to £3,360; Fresnillo shares fell 0.74% to £2,672; and Antofagasta shares declined by 2.40% to £2,887.

Ashtead Group also edged lower by 0.81% to £4,770.

BAT Backs Guidance but Shares Slide

British American Tobacco (BAT) dropped 4.4% to £4,127, after the company said growth in 2026 was expected at the lower end of its medium-term target range.

BAT reiterated its medium-term targets, forecasting revenue growth between 3% and 5% and adjusted profit growth between 4% and 6%. 

It expects around 2% revenue and profit growth in 2025 and highlighted strong performance in newer categories such as Vuse and Velo. BAT also announced plans to expand its share buyback programme to £1.3 billion next year.

Frasers Group Expands Property Footprint

Frasers Group confirmed its acquisition of the Swindon Designer Outlet, reinforcing its strategy of supporting brand partners like Nike, Adidas, and Boss through premium retail centres. 

The outlet, drawing over three million visitors annually, ranks among the UK’s top five by footfall.

Retail Sales Slow Despite Black Friday Boost

Fresh data from the British Retail Consortium and KPMG indicated retail sales rose only 1.4% YoY in November, the weakest growth in six months. 

Non-food sales were nearly flat, rising just 0.1%, as cautious consumers pulled back spending ahead of the Autumn Budget. Poor weather further impacted footfall, which fell 0.8%.

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Global Markets Mirror Cautious Mood

The Dow Jones is down 0.45% and the S&P 500 is slipping 0.35%. In Asia, the Hang Seng fell 1.1%, while Japan’s Nikkei managed modest gains.

With Brent crude steady at $62.40 and gold slightly softer at $4,181 an ounce, investors remain firmly focused on tomorrow’s Fed decision for near-term direction.