FTSE 100 Edges Lower as UK Stocks Move In Cautious Territory Ahead of Fed Decision

UK equities demonstrated constrained movement during Tuesday’s session, with the benchmark FTSE 100 index settling 8.89 points lower at 9,653.95, representing a marginal 0.09% decline. Market participants remained in a holding pattern as investors positioned themselves cautiously before the Federal Reserve’s widely anticipated policy announcement scheduled for Wednesday, coupled with Fed Chair Jerome Powell’s subsequent press conference.

The monetary policy landscape continues to weigh on sentiment, with consensus expectations pointing toward a 25 basis point rate cut from the Fed. The accompanying policy statement will be scrutinized closely for forward guidance on the central bank’s trajectory regarding future interest rate adjustments.

Gainers Lead the Session

Positive momentum emerged across select pockets of the market. WPP topped the gainers list with a robust 4.7% advance, while The Sage Group climbed 3.2%. Accumulating solid gains in the 2-3% range were Babcock International, Metlen Energy & Metals, BAE Systems, Entain, and Fresnillo. Additional strength surfaced with M&G, Pearson, Sainsbury, Airtel Africa, Relx, Vodafone Group, Persimmon, AstraZeneca, and Admiral Group posting noteworthy advances.

Weakness in Key Segments

On the downside, British American Tobacco retreated approximately 2.8% following management guidance that 2026 trading performance is expected to trend toward the lower boundary of its mid-term guidance range. JD Sports Fashion retreated 2.3% during the session. Further declines materialized across Tesco, Antofagasta, EasyJet, IAG, Ashtead Group, Croda International, The Magnum Ice Cream, Pershing Square Holdings, and Glencore, which each moved down 1 to 1.6%.

The narrow trading band reflects the broader market dynamic as investors await clarity on the Federal Reserve’s policy direction, with Wednesday’s announcement potentially catalyzing more pronounced directional movement in subsequent sessions.