FTSE 100 Holds Steady Amid Precious Metals and Defence Gains

The UK's FTSE 100 was relatively stable as gains in precious metal miners and defense stocks offset other declines. Investors anticipate a U.S. interest rate change. Global caution prevails ahead of the Federal Reserve's decision, with expectations for a 25 basis point cut. Meanwhile, UK spending showed mixed trends.

On Tuesday, the UK's FTSE 100 experienced minimal movement as advances in precious metal mining and defense sectors balanced losses elsewhere, with investors eagerly awaiting a pivotal U.S. interest rate decision on Wednesday.

The FTSE 100 slightly decreased by 0.03%, while the FTSE 250 decreased by 0.1%. Defense stocks saw a rise following Bloomberg News' report of forthcoming German defense contract approvals totaling 52 billion euros, with companies like BAE Systems and Rolls-Royce trading higher.

Investor sentiment remained cautious globally as the Federal Reserve prepared for its monetary policy announcement, with many predicting a 25 basis point rate cut. Gold and silver prices rose, impacting the precious-metal miners' indexes positively. In the UK, the Bank of England is also expected to lower rates due to signs of a weakening labor market and reduced inflation.