London close: Stocks weaker amid fresh political concerns

(Sharecast News) - Political instability in Europe negatively impacted market sentiment in London on Monday, with the UK's FTSE 100 dropping to its lowest level in nearly two weeks. The market was further dampened by speculation that Ashtead Group could become the latest blue-chip company to exit the London market.

The FTSE 100 index closed down 0.2% at 8,228.48, while the FTSE 250 fell by 0.53% to 20,446.04.

The British pound also showed mixed performance, slipping 0.04% against the US dollar to $1.2714, but gaining 0.55% against the euro to €1.1840.

The decline in stocks extended losses made on Friday, following a stronger-than-expected US employment report for May, which heightened concerns about potential interest rate hikes.

While losses in London were notable, they were not as severe as those seen across Europe. Investors reacted to the rise of far-right, anti-immigrant political parties in the European Parliament elections.

In France, President Emmanuel Macron announced a snap poll after his party faced a significant defeat.

In the absence of major economic releases in the UK, the market's attention turned to the US, where the results of three Treasury debt auctions were highly anticipated.

Ashtead in focus amid move speculation

Ashtead finished a rocky day higher amid speculation that the equipment rental firm is contemplating moving its listing to the US, where it earns the majority of its revenues.

AJ Bell investment director Russ Mould commented, "no-one will want to see the company switch its listing to New York, especially as the firm is just one of 18 in the UK's elite index that can point to a record of growing its dividend every year for at least a decade."

He acknowledged, however, that there are valid reasons for such a move, including tax and currency considerations, employee incentives, and the potential for US-listed shares to facilitate acquisitions.

ME Group International experienced a sharp decline despite reporting a strong first-half trading performance.

The company noted a 4.6% increase in group revenue and a 10.3% rise in profit before tax compared to the previous year, driven by growth in its photobooth and laundry operations.

The market's reaction suggests investors may have had higher expectations or concerns about future performance.

Conversely, Chemring saw gains after signing a 15-year partnership deal with US defense firm Northrop Grumman.

The agreement includes the supply of HMX energetic material used in missile programs and an initial order valued at $83 million, reflecting increased global demand for military weapons.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,228.48 -0.20% FTSE 250 (MCX) 20,446.04 -0.53% techMARK (TASX) 4,825.07 -0.37%

FTSE 100 - Risers

M&G (MNG) 203.00p 2.37% CRH (CDI) (CRH) 6,202.00p 2.01% Rolls-Royce Holdings (RR.) 465.00p 1.77% BP (BP.) 470.85p 1.76% Ashtead Group (AHT) 5,642.00p 1.51% Glencore (GLEN) 475.80p 1.29% Standard Chartered (STAN) 753.20p 0.97% Pershing Square Holdings Ltd NPV (PSH) 4,266.00p 0.95% Shell (SHEL) 2,757.50p 0.91% 3i Group (III) 2,947.00p 0.72%

FTSE 100 - Fallers

Rentokil Initial (RTO) 409.30p -2.87% Diploma (DPLM) 4,090.00p -2.85% Admiral Group (ADM) 2,657.00p -2.67% Convatec Group (CTEC) 245.40p -2.54% Smith (DS) (SMDS) 361.60p -2.54% Diageo (DGE) 2,607.00p -2.36% Smurfit Kappa Group (CDI) (SKG) 3,622.00p -2.21% Haleon (HLN) 323.70p -2.12% Croda International (CRDA) 4,232.00p -2.01% Reckitt Benckiser Group (RKT) 4,420.00p -1.91%

FTSE 250 - Risers

Harbour Energy (HBR) 315.60p 4.78% SSP Group (SSPG) 164.00p 3.27% Diversified Energy Company (DEC) 1,137.00p 2.99% Indivior (INDV) 1,311.00p 2.74% Just Group (JUST) 103.60p 2.57% Ascential (ASCL) 340.00p 2.10% NCC Group (NCC) 147.60p 2.07% Great Portland Estates (GPE) 346.00p 1.91% Hargreaves Lansdown (HL.) 1,074.00p 1.46% Auction Technology Group (ATG) 561.00p 1.45%

FTSE 250 - Fallers

Patria Private Equity Trust (PPET) 546.00p -5.21% Me Group International (MEGP) 162.00p -4.93% Aston Martin Lagonda Global Holdings (AML) 156.30p -4.70% North Atlantic Smaller Companies Inv Trust (NAS) 4,000.00p -4.13% Foresight Group Holdings Limited NPV (FSG) 443.00p -3.49% Crest Nicholson Holdings (CRST) 241.60p -3.28% Ferrexpo (FXPO) 44.65p -2.93% AO World (AO.) 109.00p -2.85% ICG Enterprise Trust (ICGT) 1,210.00p -2.78% W.A.G Payment Solutions (WPS) 70.00p -2.78%