European stock markets opened Tuesday in negative territory, with the pan-European Stoxx 600 down 0.2%.
Basic resources stocks led the losses, falling 1.2%, as disappointing Chinese trade figures weighed on investor sentiment.
Market participants are focused on Wednesday’s US inflation report, which could significantly influence Federal Reserve interest rate decisions at its December 17-18 meeting.
Economists polled by Dow Jones expect the Consumer Price Index to rise by 0.3% in November and 2.7% year-over-year.
US stock futures were flat on Monday evening after the S&P 500 and Nasdaq Composite retreated from record highs.
In Asia, Chinese stocks posted mixed results despite broader gains in the region.
Ashtead drags down FTSE 100, also plans move to New York primary listing
The FTSE 100 index dropped 0.5%, losing 41.26 points to settle at 8,310.82, as Ashtead shares plunged more than 10% as the equipment hire firm cut its full-year profit forecast, citing challenges in North American construction markets affected by prolonged high-interest rates.
The Ashtead Group also announced plans to move its primary listing to the US market while retaining a secondary listing in London.
One of London’s top 30 most valuable listed companies, Ashtead stated that relocating its primary listing to the US would enhance “overall liquidity in the group’s shares” by providing access to deeper American capital markets and increasing its appeal to US investors.
The Sunbelt Rentals owner emphasized that nearly all its operating profit comes from North America, where its core growth opportunities lie.
“The U.S. is the natural long-term listing venue for the group,” Ashtead stated.
Shareholders will vote on the proposal at a future general meeting, with the transition expected to take 12-18 months.
This move mirrors earlier decisions by other UK-based firms, such as Flutter Entertainment, to shift primary listings to the US.
Moonpig shares drop 10% amid gift experiences write-down
Moonpig shares declined by 10% after the online greeting card retailer reported delays in the turnaround of its gift experiences division.
The company cited challenging economic conditions as a key factor in writing down the value of the division by £56.7 million.
This impairment contributed to a £33 million net loss for the six months ending October 31.
However, Moonpig’s adjusted profits rose 9% to £27.3 million during the same period, supported by a 10% revenue growth in its core brand, driven by higher order volumes.
Despite the setback, the FTSE 250 company introduced its first-ever interim dividend of 1p per share. Shares fell 25.5p to 242p following the announcement.
Thames Water issues a dire warning
Thames Water, the UK’s largest water supplier, warned that it might exhaust its funds by March 2024 unless it secures a £3 billion financial lifeline.
The company has been struggling under a £19 billion debt burden while servicing 16 million customers across London and the Thames Valley.
Two key court hearings, set for December 17 and January 20, will determine whether creditors approve the emergency funding package.
Thames Water CEO Chris Weston expressed cautious optimism, stating, “Today’s news demonstrates further progress to put Thames Water onto a more stable financial footing as we seek a long-term solution to our financial resilience.”
Investor interest in the company remains high, with Covalis Capital proposing a £1 billion upfront cash injection and a plan to sell off parts of the utility.
The UK government and water regulator Ofwat are closely monitoring developments.
Germany confirms November inflation at 2.4%
Germany confirmed its November harmonized inflation rate at 2.4% year-over-year, according to Destatis.
The increase was primarily driven by rising service prices, partially offset by lower energy costs.
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