UK Stock Market Today: FTSE 100 Holds Near Record Highs After London Open on 9 December 2025

LONDON, 9 December 2025, 08:30 GMT — The UK stock market opened in a cautious but resilient mood on Tuesday, with the FTSE 100 hovering just below record territory as traders weighed a wave of corporate news against soft consumer data and looming central‑bank decisions.

By around 08:20–08:25 GMT, roughly half an hour after the London open, the FTSE 100 was trading near 9,649, up about 0.04% on the day and within touching distance of its all‑time high near 9,930 set in November. ^[1] The mid‑cap FTSE 250 was also close to 22,000, modestly higher over the past five sessions. ^[2]

That early stability comes despite:

Underwhelming November retail sales and signs of consumer strain,
A packed UK corporate diary featuring British American Tobacco, Ashtead, Chemring and Moonpig, and
Global markets on edge ahead of the US Federal Reserve’s latest rate decision and a crucial Bank of Englandmeeting next week. ^[3]

FTSE 100 edges higher in early London trading

The FTSE 100’s muted move at the open follows a softer close on Monday, when UK large caps slipped about 0.2–0.3%, in line with broader European weakness as bond yields rose and investors stepped back ahead of the Fed meeting. ^[4]

Today’s early snapshot:

FTSE 100: ~9,649, up 3–4 points (+0.04%), still close to its 52‑week peak of 9,930.09 reached on 12 November 2025. ^[5]
FTSE 250: ~21,971 on the latest FT data, showing a small gain over the last five days. ^[6]
GBP/USD: Around 1.33, barely changed over the past week, while the UK 10‑year gilt yield sits near 4.2%, reflecting lingering rate anxiety. ^[7]

With the FTSE 100 already up strongly this year, Tuesday’s early action looks more like position‑tweaking than trend‑setting — investors are digesting fresh company news but reluctant to take big directional bets before the Fed and BoE clarify the 2026 rate path. ^[8]

Corporate news spotlight: BAT, Frasers, Ashtead, Chemring and Moonpig

A cluster of UK‑listed companies delivered updates just before or as the market opened, providing much of the stock‑specific colour behind today’s trading.

British American Tobacco: steady guidance and a bigger buyback

British American Tobacco (BAT) set the tone for blue‑chip defensives with a 2025 pre‑close trading update released at 07:30 GMT. The group:

Now expects around 2% revenue and adjusted profit growth for FY25,
Reports accelerating revenue from “New Categories” such as vaping and oral nicotine in the second half, and
Reaffirmed its 2026 guidance, while announcing a £1.3bn share buyback for FY26. ^[9]

Management continues to target 3–5% annual revenue growth and 5–8% EPS growth from 2026 onwards, underpinned by strong cash generation and a focus on deleveraging. ^[10]

For the wider FTSE 100, BAT’s update reinforces a key theme of 2025: high‑yield, cash‑rich defensives (tobacco, staples, energy) remain central to the index’s appeal, especially for income investors hunting reliable dividends while rates are still elevated.

Frasers Group: more bricks in the retail empire

As the market opened, Frasers Group was again in the spotlight after snapping up Swindon Designer Outlet, only weeks after acquiring the Braehead shopping centre near Glasgow. ^[11]

The deal value wasn’t disclosed, but the move fits Frasers’ “Elevation” strategy — building a vertically integrated retail ecosystem spanning premium brands, outlets and online platforms. Investors will be watching:

How quickly the new asset contributes to earnings, and
Whether Frasers can keep footfall and rents resilient against a softening UK consumer backdrop.

Ashtead Group: slower profit, bigger buyback

Equipment rental giant Ashtead Group reported interim results this morning, confirming:

Revenues up around 1% in the first half,
Operating profit down about 9%, largely due to one‑off restructuring and relisting costs, and
A 4% increase in the interim dividend, plus a fresh US$1.5bn share buyback programme. ^[12]

Forward guidance remains unchanged, and the results are framed as a pause rather than a reversal in Ashtead’s growth story. With the group planning a listing shift to New York, Tuesday’s reaction will give an early indication of how UK investors feel about another flagship name tilting its centre of gravity away from London.

Chemring: defence tailwinds keep orders robust

Defence technology specialist Chemring published full‑year results and an accompanying webcast schedule, confirming that: ^[13]

Revenue rose about 2% to £497.5m,
GAAP earnings jumped from roughly £41.5m to £53.3m, and
The order book remains at a record level, with around 76% of FY26 revenues already booked. ^[14]

Chemring notes that strong global defence spending is being partially offset by short‑term delays in UK procurement, but the overall outlook is described as stable, with higher capex cushioned by grant funding. ^[15]

In market terms, Chemring embodies a wider FTSE 100/250 theme of 2025: defence and security stocks have been among the index’s most dependable winners, as geopolitics keeps demand for munitions, sensors and electronic warfare capabilities elevated. ^[16]

Moonpig: profits up and a fatter dividend

Online greetings and gifting platform Moonpig also reported half‑year numbers for the six months to 31 October 2025:

Revenue increased 6.7% to about £168.6m,
Adjusted pre‑tax profit rose 11.4% to £30.5m, and
The interim dividend was lifted 25% to 1.25p per share. ^[17]

Management highlighted particularly strong growth at the core Moonpig brand and a return to growth at Dutch subsidiary Greetz, suggesting that the group’s post‑pandemic recalibration is gaining traction. ^[18]

For investors, Moonpig sits at the intersection of e‑commerce resilience and consumer caution: a small uplift in gifting can materially improve earnings, but profit guidance will be closely scrutinised for any hint of holiday‑season weakness.

Macro backdrop: Fed, BoE and fragile UK consumers

Today’s opening trades in London are taking place against a challenging macro backdrop that helps explain why indices are flat rather than euphoric.

Global markets: all eyes on the Fed

Overnight and into Tuesday, global equity markets were mostly subdued as traders waited for the start of the Fed’s two‑day policy meeting. ^[19]

Key points from the global picture:

Markets widely expect another rate cut from the Federal Reserve this week, but
There is considerable uncertainty about how many cuts might follow in 2026, given sticky inflation and divisions within the Fed, and
US Treasury yields and other major bond yields have picked up, putting pressure on equity valuations worldwide. ^[20]

This Fed‑centric anxiety has seen investors trim risk exposure across Europe, with Monday’s session ending slightly lower for the pan‑European STOXX 600 and London’s FTSE 100. ^[21]

UK consumer spending: a soft November and underwhelming Black Friday

Fresh data this morning confirm that the UK consumer remains under strain:

Barclays reported that card spending in November fell 1.1% year‑on‑year, the sharpest decline since early 2021. ^[22]
The British Retail Consortium (BRC)–KPMG Retail Sales Monitor showed total retail sales up only 1.4%year‑on‑year and like‑for‑like sales up 1.2%, the slowest growth in about six months and well below the 12‑month average. ^[23]
Black Friday provided far less of a boost than retailers had hoped, as households reined in discretionary spending ahead of Finance Minister Rachel Reeves’ budget and absorbed higher living costs. ^[24]

This combination of weak non‑food sales, cautious households and squeezed margins goes a long way to explaining why retail and consumer discretionary stocks have struggled in recent sessions, even as the headline FTSE indices flirt with record highs. TechStock²+1

Central banks: Bank of England still in focus

While all the attention today is on the Fed, UK investors are already looking ahead to next week’s Bank of Englanddecision:

Recent comments from BoE figures suggest inflation is likely to return to target over the near term, but policymakers remain wary of easing too aggressively while wage growth is still elevated. ^[25]
Markets are pricing in rate cuts into 2026, but expectations have been scaled back as global bond yields have pushed higher and economic data has turned mixed. ^[26]

For rate‑sensitive sectors — especially housebuilders, real estate investment trusts (REITs) and leveraged consumer names — every line of BoE guidance will matter. Monday’s weakness in property and housing shares, partly driven by higher yields, is likely to remain a feature in traders’ screens over the coming days. TechStock²+1

How the UK market stacks up vs global equities

One of the most striking features of 2025 has been the UK market’s ability to rally hard while staying “cheap” on global comparisons.

A strong year for the FTSE 100

According to analysis compiled by MoneyWeek using AJ Bell and ShareScope data, the FTSE 100 is on track for a total return of about 22.8% in 2025, including dividends — its best year since the global financial crisis and ahead of the S&P 500’s performance in sterling terms. ^[27]

Around 75% of FTSE 100 constituents have delivered positive total returns this year.
Top performers include Fresnillo, Airtel Africa, Endeavour Mining and Rolls‑Royce, while financials such as Lloyds, Standard Chartered and Prudential are also near the top of the leaderboard. ^[28]
On the downside, names like WPP, Bunzl, Diageo and London Stock Exchange Group have posted sizeable double‑digit losses, reminding investors that stock‑picking still matters even in a bull market. ^[29]

Deep valuation discount persists

Despite this strong performance, the UK still trades at a steep discount to global equities:

Franklin Templeton notes that MSCI UK trades on roughly a 35% valuation discount to MSCI World, even though around 75% of FTSE 100 earnings come from overseas markets. ^[30]
A recent Reuters Breakingviews analysis estimates that the FTSE 350 trades at a 42% forward P/E discount to the S&P 500; even after adjusting for sector differences (notably the US’s heavy tech weighting), the UK still sits on a discount of roughly 30%, one of the widest in three decades. ^[31]
Dividend yields remain notably higher: about 3.4% for UK equities versus around 1.2% for the US, giving UK stocks a meaningful income advantage. ^[32]

2026 forecasts: can UK stocks keep outperforming?

Looking ahead, several research houses argue that the UK’s combination of decent earnings growth and low valuations could support outperformance into 2026:

Using a “building‑blocks” approach that considers where UK companies earn their revenue, Reuters’ analysis suggests FTSE 350 EPS could grow about 7.4% in 2026, edging out both the S&P 500 and broader European indices. ^[33]
Even if the valuation gap with the US doesn’t fully close, that growth plus a higher dividend yield could allow UK equities to beat US peers on a total‑return basis. ^[34]
Meanwhile, London Stock Exchange Group data show over £1.9 trillion has flowed out of UK equities since 2000, leaving domestic investors underweight their home market just as performance has started to recover. ^[35]

This is why many strategists now describe the UK as one of the market’s most compelling “contrarian” opportunities— a mature, dividend‑rich market that has quietly outperformed in 2025 while still being treated with suspicion by global asset allocators. ^[36]

Sector themes to watch in today’s session

As Tuesday’s trading develops beyond the first half‑hour, several sector themes are likely to drive intraday moves:

Defence and security
- Chemring’s solid results and record order book reinforce the bullish narrative around UK defence stocks, which have already benefited from elevated military spending and geopolitical risk this year. ^[37]
Retail and consumer discretionary
- The BRC and Barclays data paint a picture of frugal households and lacklustre Black Friday trading, which may weigh further on retailers, fashion chains and discretionary e‑commerce names, even as Christmas approaches. ^[38]
Financials and banks
- Banks and insurers have been among the top FTSE performers in 2025, helped by higher rates and still‑healthy credit quality. ^[39]
- Any suggestion from the Fed or BoE that 2026 cuts will be slower or shallower than priced could extend their relative outperformance.
Housebuilders and property
- Higher bond yields and weaker consumer sentiment have put renewed pressure on housebuilders and REITs in recent days. TechStock²+1
- These rate‑sensitive names are likely to remain volatile until the BoE’s December decision and forward guidance are known.
High‑yield defensives and “bond proxies”
- Tobacco, pharmaceuticals and staple consumer stocks — including BAT and Unilever — continue to play the role of income‑oriented bond proxies, particularly for investors wary of further bond‑market volatility. ^[40]

What this means for UK investors today

For traders and longer‑term investors alike, this morning’s opening tone in London underlines a few key messages:

The rally is advanced but not exhausted. The FTSE 100 is near historic highs after a 20%‑plus total return year, yet valuation metrics still suggest room for upside if global risk appetite holds and earnings deliver. ^[41]
Macro risk is in the driving seat. Corporate updates from BAT, Ashtead, Chemring and Moonpig add stock‑specific catalysts, but index‑level direction in the short term will largely be dictated by the Fed’s decision, its rate‑path signalling for 2026, and the BoE’s response. ^[42]
Consumer caution is the weak link. The soft November retail data and disappointing Black Friday highlight that the domestic economy is far from booming, even as the index makes headlines. That dichotomy matters most for mid‑caps and domestically focused sectors. ^[43]
Valuation and income support the bull case. A large valuation discount versus global markets combined with a higher dividend yield gives UK equities a cushion if growth slows or volatility returns. ^[44]

As the session unfolds, investors will be watching whether the FTSE 100 can build on its early fractional gains, or whether caution ahead of the Fed and BoE drags London stocks back into the red later in the day.

Nothing in this article constitutes investment advice. Markets and prices can move quickly, particularly on days dominated by central‑bank decisions, and readers should consider their own financial circumstances or speak with a regulated adviser before making investment decisions.