FX.co ★ FTSE Edges Up Slightly on Tuesday

The FTSE 100 experienced a slight increase on Tuesday, driven by gains in defensive utility and defense stocks, which helped offset a decline in mining shares following weak economic data from China. Within the FTSE 250, Chemring, a defense firm, saw a significant rise after announcing expectations for benefits from heightened government defense spending, buoying sentiment among defense stocks. Utilities performed well as investors adopted a more cautious approach in the face of global uncertainties. Conversely, Pearson's shares fell after a lackluster update from IDP Education. Homebuilders faced pressure after MJ Gleeson issued a profit warning, attributing it to a sluggish housing recovery and planning delays. Vistry's shares dropped approximately 5%, while Persimmon, Crest Nicholson, and Barratt also saw declines. Bank of England policymakers informed Parliament that, despite economic uncertainties, there is still a likelihood of interest rates decreasing. In the meantime, the OECD cautioned that the UK's limited fiscal flexibility leaves it susceptible to economic shocks under Chancellor Rachel Reeves's existing spending policies.