The UK’s blue-chip FTSE 100 edged higher on Tuesday, as gains in defence stocks helped offset a slide in shares of British American Tobacco following a downbeat growth forecast.
The FTSE 100 rose 0.1% by 1130 GMT, while the domestically oriented FTSE 250 index added 0.2%.
BAT fell 2.9% after the Dunhill maker said it expects its 2026 results to scrape the lower end of its mid-term targets as pressure from regulation and competition in the U.S. vape market erode strong growth elsewhere in its portfolio.
Defence stocks were trading higher across Europe after Bloomberg News reported that German lawmakers are set to approve procurement contracts worth a record 52 billion euros next week. Shares of BAE Systems rose 2.3%, while Rolls-Royce added 0.5%.