(Reuters) – Britain’s FTSE 100 fell on Tuesday as mining shares slipped, while Ashtead dropped after it warned of lower than expected annual profit and proposed to move its primary listing to New York from London.
The blue-chip FTSE 100 fell 0.9%, its worst day since Nov.
12, while the midcap FTSE 250 was down 0.4% in its worst session for two weeks.
Shares of miners Glencore, Antofagasta and Anglo American fell between 1.1% and 3.5% as copper prices slipped, under pressure from a slowdown in China’s export growth and a stronger dollar.
[MET/L]
Metal prices had rallied in the previous session on China’s planned move towards a “moderately loose” monetary policy for the first time since 2010.
Ashtead dropped 14% to the bottom of the FTSE 100.
The equipment rental firm said it was proposing to move its primary listing to New York from London and also warned of lower than expected annual profit due to a weak commercial construction market in the United States.
Ashtead joins a growing list of companies moving away from European listings in favour of U.S.
markets, where valuations are generally higher.
Precious metal miners fell 1.7%, while aerospace and defence stocks saw the biggest sector fall, down 2.1%.
Separately, NCC Group dropped 15.3% to the bottom of the mid-cap index after the cyber security firm swung to an annual operating loss.
FirstGroup was a bright spot, rising 6.5%, after the public transport operator agreed to acquire RATP London.
Investors awaited key U.S.
inflation data on Wednesday that could cement bets on a Federal Reserve rate cut on Dec. 18.
In the UK, the spotlight is on Friday’s gross domestic product estimate for October, which could influence the Bank of England’s interest rate trajectory.
Traders expect the BoE to hold rates in its policy decision next week.
British stocks saw their first monthly inflow in five years in November, potentially marking a turning point, as cheap valuations, political stability and Britain’s relative immunity to escalating trade tensions attract investors.
Separately, British shoppers faced increased pressure on their budgets in November after grocery price inflation edged higher for the third month in a row, industry data showed.
Recruitment platform Indeed said job vacancies have dried up faster in the United Kingdom than in similar countries over the past year, pointing to a loss of momentum in the economy in the second half of 2024.
(Reporting by Nikhil Sharma and Sukriti Gupta.
Editing by Janane Venkatraman and Mark Potter)
