FTSE 100 down 0.1, FTSE 250 falls 0.2
Frasers drop to bottom of FTSE
DS Smith rises on resilient demand

Dec 8 Reuters UK39;s FTSE 100 was dragged lower by consumer staples and retailers on Thursday after forecasts from British American Tobacco and Frasers fuelled concerns over economic outlook.

The bluechip FTSE 100 dipped 0.1 while the FTSE 250 was down 0.2, as of 0949 GMT.

The FTSE 350 Food, Beverage and Tobacco index fell 1.4, weighed down by a nearly 3 drop in shares of BAT after the tobacco firm said it expects net finance costs to top 1.6 bln pounds 1.95 bln in 2022.

Frasers Group was the biggest drag on retailers index, which shed 0.9, after the sportswear and clothing firm warned of a challenging and uncertain outlook despite posting an upbeat halfyearly profit. Frasers stock lost 7.1 on Thursday.

The update from Frasers shows there is still resilience in the fashion retail sector, but the company is unlikely to be immune to the recessionary headwinds whipping up, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

UK markets are bracing for a long uncertain winter amid rising borrowing costs and doubledigit inflation that have sparked worker unrest in the recent past.

The Bank of England is set for a hike of 50 basis points next week as it is focuses on getting wayward inflation down to 2.

We39;re seeing an overall riskoff sentiment on the FTSE 100 because of worries about the twin evils of recession and high…