For free, real-time breaking news alerts sent straight to your inbox, sign up for our breaking news emails
Sign up for our free breaking news emails
Financial markets in the UK got off to a slow start as meager gains in the FTSE 100 failed to offset losses from the crash in Ashtead shares.
Britain’s top stock index closed narrowly in the red after a quiet session for traders and a busier day for British politics.
The Chancellor will make his autumn statement on Wednesday after Prime Minister Rishi Sunak promised tax cuts to boost economic growth.
The FTSE 250 rose slightly on Monday, but the more internationally focused FTSE 100 slipped into the red and below the 7,500 mark.
It lost 7.89 points or 0.11% to close at 7,496.36.
Ashtead Group slipped to the bottom of the index after the equipment rental company said profits were expected to fall short of previous expectations, sending its shares down by more than a tenth.
The company said it was hurt by a “calmer hurricane season” and fewer natural disasters such as wildfires, as well as strikes by Hollywood writers and actors that weighed on sales.
It was a mixed session for other European markets, with Germany’s Dax closing 0.11% lower and France’s Cac rising 0.18%.
In the US, trading began with the S&P 500 up 0.4% and the Dow Jones up 0.3% as European markets closed.
The pound recovered against the US dollar, hitting a two-month high during the day. By the close of trading, it had risen 0.35% to $1.25.
Brent crude oil prices rose 2.65% to $82.75 a barrel.
In corporate news, shares in musicMagpie jumped after the refurbished electronics retailer said it was in talks about a possible sale to BT and private equity firm Aurelius.
The company has seen its share price slump since going public two and a half years ago, with trading hit earlier this year by postal strikes and weaker consumer confidence.
Confirmation that takeover talks were at a “very early stage” was enough to boost the share price, which closed 23.7% higher.
Meanwhile, shares of catering giant Compass fell despite the company reporting higher sales and profits last year.
The company said its sales reached more than 30 billion pounds in the year to September as it benefited from growth in North America as well as higher food prices. The share price closed 2% lower.
The biggest risers on the FTSE 100 were Diploma up 338p to 3,358p, Ocado Group up 35.2p to 595.8p, Flutter Entertainment up 375p to 13,070p, Spirax-Sarco Engineering up 250p to 9,190p and Antofagasta up 29p to 1,408p.
The biggest losers on the FTSE 100 were Ashtead, down 550p to 4,694p, Smurfit Kappa, down 88p to 2,700p, Compass Group, down 42p to 2,050p, ConvaTec, down 3.6p Pence to 223.2p and AB Foods down 36p to 2,050p 2,344p.
Comments are closed.