FX.co ★ FTSE 100 Extends Losses for 2nd Session

The FTSE 100 edged lower on Tuesday, extending losses after a 1.1% decline in the previous session. Banking stocks remained under pressure, with HSBC, Lloyds Banking Group, NatWest and Standard Chartered down between 0.9% and 1.4%. Aerospace and defence names also weakened, as Rolls-Royce and BAE Systems each fell by more than 1%. Distribution specialist Bunzl was among the biggest laggards, dropping over 3%, while Rio Tinto slipped more than 1%.

In contrast, Anglo American advanced around 2% after lifting its annual diamond production guidance as it continues efforts to sell its De Beers unit. On the data front, official figures showed UK payroll employment rose by 13,000 in September, defying expectations for an 8,000 decline. August’s figure was also revised from a 26,000 fall to a 1,000 increase. The unemployment rate eased to 4.7% in the three months to August, its lowest level since July 2025, indicating a resilient labour market ahead of Chancellor John Healey’s budget next week.