London close: Stocks finish lower as Ashtead announces US move

(Sharecast News) - London stocks closed in negative territory on Tuesday, weighed down by a dip in sentiment following news that Ashtead planned to shift its primary listing to the United States, adding to a growing trend of London-listed firms looking across the Atlantic. The FTSE 100 index fell 0.86% to close at 8,280.36 points, while the FTSE 250 edged 0.36% lower to settle at 20,973.94 points.

In currency markets, sterling was last up 0.01% on the dollar to trade at $1.2751, while it advanced 0.45% against the euro, changing hands at €1.2135.

"Stock indices were mixed on Tuesday as China's export growth came in below forecasts and despite US small business optimism hitting an over three-year high," said IG senior analyst Axel Rudolph.

"Traders awaited further key catalysts such as Wednesday's US CPI print.

"Some were also cashing in profits ahead of next week's US Fed monetary policy meeting and the festive season."

Rudolph noted that oil prices, together with the price of gold, steadied further despite a dollar which remained bid ahead of Wednesday's US inflation data.

"According to the CME FedWatch tool, nearly 88% of respondents expect to see a 25 basis point rate cut to 4.25%-to-4.50% at next week's Fed meeting."

UK on track for record December grocery spend, German inflation climbs

In economic news, UK grocery spending was on track for a record-breaking December, with supermarket sales projected to exceed £13bn for the first time according to Kantar.

Over the four weeks to 1 December, spending rose 2.5%, driven by strong demand for festive items and premium products.

The cost of a traditional Christmas dinner for four increased 6.5% year-on-year to £32.57, largely due to higher prices for turkey and vegetables.

Grocery inflation in general held steady at 2.6%, however, as retailers emphasised low pricing strategies to attract cost-conscious shoppers.

"Monday 23 December is likely to be the single busiest day for the supermarkets this year, although there are clear signs that shoppers are already stocking up their cupboards," said Fraser McKevitt, head of retail and consumer insight at Kantar.

"The proportion of spending on premium own label products reached 5% over the latest four weeks and we expect it to climb even higher in December to nearly 7%.

"Sales on promotion reached 30% in November, the highest since Christmas last year."

On the continent, German inflation climbed to 2.2% in November, up from 2% in October, as confirmed by the federal statistics office.

Core inflation rose to 3%, driven by higher food prices, which increased 1.8% year-on-year, even as energy prices fell 3.7%.

"Inflation in November 2024 was particularly fuelled by above-average price increases for services," Destatis said.

"By contrast, the development of energy prices again had a dampening effect on the inflation rate in November 2024, but the effect was less pronounced than in the previous months."

Across the Atlantic, small business optimism in the US soared in November, with the NFIB index jumping to 101.7 from 93.7 in October - its highest level in over three years.

Business confidence surged amid easing uncertainty, with expectations for economic improvement rising sharply.

Labour productivity also increased, growing at an annualized pace of 2.2% in the third quarter.

Unit labour costs rose just 0.8%, significantly lower than preliminary estimates, suggesting potential for further inflation moderation.

China's trade data meanwhile revealed a slowdown in export growth, which rose 6.7% in November compared to 12.7% in October, falling short of an expected 8.5% increase.

Imports contracted by 3.9%, a stark contrast to forecasts of modest growth, raising concerns for policymakers navigating global trade uncertainties.

Earlier in the global day, the Reserve Bank of Australia kept interest rates steady at 4.35% but hinted at possible cuts ahead, noting eased inflationary pressures.

Ashtead slides on Wall Street move plans, profit warning

On London's equity markets, Ashtead Group plunged 14.03% after announcing plans to shift its primary listing to the US and issuing a profit warning.

The company downgraded its full-year rental revenue growth forecast to between 3% and 5%, citing weaker US construction market dynamics.

"Equipment rental giant Ashtead is packing its bags and heading stateside, dealing another blow to UK markets," said Hargreaves Lansdown senior equity analyst Matt Britzman.

"The move had been whispered about for a while, despite Ashtead previously insisting there were no such plans.

"It's a logical leap - most of its leadership is already US-based, and the States are its biggest market."

Elsewhere, Prudential fell 1.53% amid reports it was exploring options for its asset manager Eastspring Investments, including selling a minority stake to broaden its business.

NCC Group tumbled 17.73% as investors reacted to its outlook statement, which flagged lengthening sales cycles despite delivering in-line annual results.

Greeting cards and gifting specialist Moonpig Group sank 14.57%, reporting a swing to a pre-tax loss for the first half, partly due to "challenging" trading in its experiences segment.

Miners Antofagasta and Glencore declined 3.47% and 2.8%, respectively, as copper prices fell following underwhelming Chinese trade data.

Meanwhile, Severn Trent lost 1.59% after allegations from a BBC Panorama report that the utility had artificially inflated its balance sheet.

On the upside, Tesco rose 1.04% after the latest Kantar data showed its highest market share since 2017, reaching 28.1%.

J Sainsbury gained 1.56% on its own market share improvements.

Passenger transport operator FirstGroup surged 6.5% after announcing its entry into the London bus market through the £90m acquisition of RATP Dev Transit London, a move expected to diversify its market presence.

Broker activity also influenced movement - British Land climbed 1.2% on an upgrade to 'buy' at Goldman Sachs, while Unite Group edged up 0.6% following a JPMorgan upgrade to 'overweight.'

In contrast, LondonMetric Property fell 0.49% after JPMorgan downgraded it to 'neutral.'

Hikma Pharmaceuticals dipped 0.1% despite an upgrade to 'outperform' by RBC Capital Markets.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,279.86 -0.86% FTSE 250 (MCX) 20,973.94 -0.36% techMARK (TASX) 4,663.22 -1.13%

FTSE 100 - Risers

Flutter Entertainment (DI) (FLTR) 21,680.00p 1.69% British Land Company (BLND) 372.20p 1.58% B&M European Value Retail S.A. (DI) (BME) 368.30p 1.43% Sainsbury (J) (SBRY) 272.80p 1.19% Tesco (TSCO) 368.60p 1.04% Spirax Group (SPX) 7,500.00p 0.87% Imperial Brands (IMB) 2,584.00p 0.58% Whitbread (WTB) 2,927.00p 0.55% Diageo (DGE) 2,445.50p 0.51% Relx plc (REL) 3,695.00p 0.49%

FTSE 100 - Fallers

Ashtead Group (AHT) 5,392.00p -14.03% Antofagasta (ANTO) 1,752.50p -3.47% Vistry Group (VTY) 686.50p -3.31% Rolls-Royce Holdings (RR.) 565.80p -2.85% Glencore (GLEN) 385.90p -2.27% JD Sports Fashion (JD.) 102.30p -2.06% 3i Group (III) 3,617.00p -1.87% AstraZeneca (AZN) 10,512.00p -1.78% Persimmon (PSN) 1,281.50p -1.73% BAE Systems (BA.) 1,179.00p -1.67%

FTSE 250 - Risers

FirstGroup (FGP) 164.00p 6.42% Baltic Classifieds Group (BCG) 334.00p 2.45% Dr. Martens (DOCS) 75.15p 2.38% Baillie Gifford US Growth Trust (USA) 284.00p 2.16% Close Brothers Group (CBG) 239.60p 2.13% IP Group (IPO) 51.00p 2.10% Carnival (CCL) 1,858.50p 2.03% Wood Group (John) (WG.) 66.25p 1.84% AJ Bell (AJB) 476.50p 1.82% Petershill Partners (PHLL) 256.00p 1.79%

FTSE 250 - Fallers

NCC Group (NCC) 137.60p -15.27% Moonpig Group (MOON) 228.50p -14.58% Future (FUTR) 1,028.00p -4.90% Hill and Smith (HILS) 2,010.00p -4.29% Fidelity China Special Situations (FCSS) 220.00p -4.14% Ashmore Group (ASHM) 166.80p -2.91% CMC Markets (CMCX) 276.00p -2.65% Marshalls (MSLH) 315.00p -2.48% PureTech Health (PRTC) 168.80p -2.31% Endeavour Mining (EDV) 1,500.00p -2.28%