FTSE 100 little changed as investors await Fed

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FTSE 100 flat, FTSE 250 down 0.1%

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BAT sees 2026 growth at lower end of target

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UK consumer spending in November disappoints

(Updates to market close)

Dec 9 (Reuters) - The UK's blue-chip FTSE 100 was little changed on Tuesday, as gains in precious-metal miners and defence stocks offset declines elsewhere, while investors looked ahead to a highly anticipated U.S. interest rate decision on Wednesday.

The FTSE 100 closed the session down 0.03%, while the domestically oriented FTSE 250 index dipped 0.1%.

Defence stocks were trading higher across Europe after Bloomberg News reported that German lawmakers are set to approve defence contracts worth a record 52 billion euros next week. Shares of BAE Systems rose 2.1%, while Rolls-Royce added 0.4%.

Global investors were mostly cautious ahead of the Federal Reserve's monetary policy decision on Wednesday, with traders mostly betting a 25 basis point rate cut following mixed economic data and dovish comments from some Fed officials in recent days.

Gold and silver prices climbed ahead of the decision, pushing the FTSE 350 index of precious-metal miners up almost 2%.

The Bank of England is also widely seen cutting rates at its policy meeting next week amid signs of labour market weakness and cooling inflation.

Barclays said spending by UK consumers on its credit and debit cards fell by 1.1% in annual terms in November, the biggest drop since February 2021 when the pandemic still raged.

A separate survey from the British Retail Consortium (BRC) trade body showed spending at big retailers rose by 1.4% in annual terms last month, the slowest growth since May.

Among other single stocks, BAT dipped 0.3% after the Dunhill maker said it expects its 2026 results to scrape the lower end of its mid-term targets.

Shell dipped 0.6% after Bloomberg reported that the oil major sought a buyer for a 20% stake in its Brazilian oilfield cluster to help fund a multibillion-dollar offshore development.

Man Group (MNGPF) rose 3.9% after J.P. Morgan upgraded the hedge fund to "overweight" from "neutral." (Reporting by Tharuniyaa Lakshmi and Sruthi Shankar in Bengaluru; Editing by Shailesh Kuber, William Maclean)