The FTSE 100 traded in a tight range on Tuesday as investors digested the latest wave of macroeconomic developments, while Whitbread shares jumped on an encouraging trading update.
London’s leading index was 2 points higher at the time of writing after trading in a 15-point range for most of the session.
“The FTSE 100 held steady just below its recent record highs early on Tuesday despite the ongoing geopolitical tensions which have been a feature of 2026 so far,” said AJ Bell head of markets Dan Coatsworth.
“This followed a new record for the Nikkei 225 overnight in Japan. A weak yen, which boosts an export-reliant economy, and the possibility of increased stimulus helped generate significant investor excitement after a public holiday.
“The Trump administration’s announcement of a 25% tariff on countries doing business with Iran, and continuing suggestions of potential military intervention amid the escalating protests in the country, do not seem to be spooking markets too much right now.
Whitbread, one of the UK Investor Magazine’s ‘Top 20 Stock Picks for 2026’, was the FTSE 100’s top riser after releasing an encouraging trading statement that goes a long way towards squashing any fears of a significant slowdown for the group.
“Whitbread’s shares have been under pressure, with investors questioning the company’s ability to absorb the impact of business rate rises following Rachel Reeves’ November Budget,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.
“Today’s Q3 statement should provide some relief for investors, with demand accelerating in both the core UK and fledgling German operations.
“On the cost side, the group’s estimate of the next financial year’s business rate impact has been reduced below the previous range of £40-£50mn to £35mn, and the group is now set to drive greater-than-planned cost efficiencies this year. It’s also playing its part in the growing clamour by the hospitality industry for more supportive government policy.
“Whether this is enough to keep activist shareholder Corvax happy remains to be seen.”
Whitbread shares were over 4% higher at the time of writing.
Barclays was among the risers as bargain hunters stepped in to buy into the dip yesterday caused by Trump’s decision to cap US credit card rates at 10%.
Kingfisher was the FTSE 100’s top faller, losing 2.5%, as a bout of profit taking accelerated.
Games Workshop was also among the losers after a 10% increase in revenue didn’t do enough to spark a fresh wave of buying in the shares, which are up 39% over the past year.
“Games Workshop’s latest results didn’t offer anything to get the market too excited after a 40%-plus surge for the shares seen over the last 12 months,” Dan Coatsworth said.
“There’s no doubt 2025 was a banner year for the fantasy miniatures specialist as it joined the ranks of the FTSE 100 and delivered several upgrades to guidance. The latest figures may have been another record set of results, accompanied by a healthy increase in the dividend despite a hit from US tariffs, but a pause for breath in the share price is no major surprise in the circumstances.”