{"id":131251,"title":"FTSE 100 Falls as Geopolitical Tensions Rise and UK Retailers Report Mixed Christmas Trading","publisher":"Share Talk","author":"sharetalk","published":"2026-01-08T08:49:34+00:00","modified":"2026-01-08T08:50:20+00:00","canonical_url":"https://www.share-talk.com/ftse-100-falls-as-geopolitical-tensions-rise-and-uk-retailers-report-mixed-christmas-trading/","markdown_url":"https://www.share-talk.com/ftse-100-falls-as-geopolitical-tensions-rise-and-uk-retailers-report-mixed-christmas-trading.md","json_url":"https://www.share-talk.com/ftse-100-falls-as-geopolitical-tensions-rise-and-uk-retailers-report-mixed-christmas-trading.json","category":"Blogs","categories":["Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["Associated British Foods shares","BAE Systems","defence stocks","FTSE 100","Greggs trading update","London stocks","Marks & Spencer sales","Primark profit warning","Tesco Christmas trading","UK stock market"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/LONDON-10_11_23.jpg?fit=1200%2C800&ssl=1","format":"news","language":"en-GB","content":"The **FTSE 100** opened lower as global markets reacted to escalating geopolitical tensions triggered by U.S. President Donald Trump’s latest actions on the international stage. Investor sentiment weakened after reports of Russian-flagged vessels being seized, the apprehension of Venezuelan leader Nicolás Maduro, and renewed threats aimed at Greenland, raising fears of further global instability.\n\nLondon’s blue-chip index fell as much as **0.5% to 9,995.91** in early trading, slipping back below the psychologically important 10,000 mark. The **FTSE 250**, which tracks mid-cap companies more exposed to the domestic economy, also declined by up to **0.3% to 22,815.99**.\n\n### Defence Stocks Rally on Higher Military Spending Expectations\n\nWhile broader markets struggled, **UK defence stocks surged**, buoyed by expectations of a sharp rise in U.S. military spending. Trump said he plans to lift the American defence budget by **50%, from $1tn to $1.5tn**, a move that investors believe could significantly benefit defence contractors.\n\n**BAE Systems** jumped around **6%** at the open, leading gains on the FTSE 100. Other defence names also advanced, with **Babcock** rising **2.3%** and **Chemring** gaining **3.2%**, reflecting optimism over stronger long-term order books.\n\n### Marks & Spencer Sees Strong Food Sales but Clothing Remains Under Pressure\n\n**Marks & Spencer (M&S)** reported a solid performance in its food business over the Christmas period, helping to offset ongoing weakness elsewhere in the group. Food sales rose **6.6% in the 13 weeks to 27 December**, as shoppers continued to trade up on groceries.\n\nHowever, M&S said its **clothing, home and beauty division** remained under pressure, with sales in that segment falling **2.5%**, partly due to lingering disruption from last year’s cyber-attack.\n\n### Tesco Raises Profit Forecast After “Strong Christmas”\n\n**Tesco** delivered one of the most upbeat updates of the day, lifting its profit outlook following strong festive trading. Chief executive **Ken Murphy** said he was “delighted with the strong Christmas we delivered for our customers”.\n\nUK sales rose **3.2% in the six weeks to 3 January** and **3.9% over the prior 13 weeks**. Tesco’s premium **Finest** range performed particularly well, with sales up **13%**, while party food sales jumped **22%**. The retailer now expects annual adjusted operating profit to land at the **upper end of its £2.9bn–£3.1bn guidance range**, offering a boost to investor confidence.\n\n### Greggs Warns Trading Conditions Remain Challenging\n\nBakery chain **Greggs** struck a more cautious tone, telling shareholders that market conditions remain “challenging”. Despite this, the company said it continues to outperform competitors, reporting **2.9% like-for-like sales growth** at company-managed stores in the fourth quarter.\n\n### Primark Owner ABF Shares Slide on Profit Warning\n\nShares in **Associated British Foods (ABF)** fell by more than **10%** after the company issued a surprise profit warning. ABF said sales growth at its **Primark** chain had fallen below expectations in the final 16 weeks of the year, with weaker demand in both Europe and the United States weighing on performance."}