Stocks in London were lower during midday trade on Tuesday, as investors looked ahead to the week’s various US data prints.
The FTSE 100 index was down 47.88 points, or 0.6%, at 8,315.99. The FTSE 250 was down 53.66 points, or 0.3%, at 20,928.34, and the AIM All-Share was unchanged at 766.96.
The Cboe UK 100 was down 0.5% at 832.51, the Cboe UK 250 was down 0.4% at 18,417.49, and the Cboe Small Companies was up 0.4% at 16,910.06.
‘The big event of the day is the ISM manufacturing index in the US. Remember, this has been in contraction territory (i.e. below 50) every month since October 2022, excluding a short-lived rebound in March this year. The slack in the manufacturing sector has been priced in for a while, and we’ll probably need to see a rather soft number to trigger recession alarms and drive the dollar materially lower. The consensus is looking at a modest improvement in August, from 46.8 to 47.5,’ said analysts at ING.
According to Swissquote Bank’s Ipek Ozkardeskaya, ‘...stronger-than-expected figures should, in the first place, let the US dollar recover a part of the recent losses, throw a floor under the US yields, disappoint indices and sectors that rely on rate cuts but give support to others – like the tech – who don’t really need the support of the Fed to do well.’
In European equities on Tuesday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.4%.
The pound was quoted at $1.3120 at midday on Tuesday in London, lower compared to $1.3145 at the equities close on Monday. The euro stood at $1.1036, against $1.1068. Against the yen, the dollar was trading at JP¥145.96, lower compared to JP¥146.95.
Retail sales in the UK increased in August, boosted by rising food sales, but growth remains sluggish and the retail environment ‘challenging’, a survey on Tuesday showed.
According to the BRC-KPMG retail sales monitor, retail sales rose 1.0% year-on-year in August, picking up speed from growth of 0.5% in July. This was above the 3-month average growth of 0.4% but below the 12-month average growth of 1.2%. In August 2023, retail sales increased 4.1%.
Food sales increased 2.9% year-on-year over the three months to August, against growth of 8.2% a year prior. In the three months to July, food sales rose 2.6% year-on-year. Non-food sales decreased 1.7% year-on-year over the three-months to August, against a decline of 0.2% in August 2023.
In the FTSE 100, Ashtead Group was up 2.1%.
For the first quarter ended July 31, the equipment rental company posted pretax profit of $544 million, down 7% from $585 million a year prior.
Revenue, however, was up 2% to $2.75 billion from $2.70 billion, while rental revenue rose 7% to $2.54 billion from $2.38 billion.
Separately, Ashtead also announced the retirement of Chief Financial Officer Michael Pratt. Accordingly, WestRock’s Alex Pease will join in October as CFO designate. He will be based in Fort Mill, South Carolina.
In the FTSE 250, Watches of Switzerland rose 5.5%.
The group said that it remains on track to deliver on its annual guidance, after trading in the first 18 weeks of the financial year was ‘in line’ with expectations.
Demand for key luxury brands, particularly products on Registration of Interest lists, remains strong in both the UK and US markets, the firm said, outstripping supply, with consistent additions and conversions. US growth is still expected to be second half weighted.
Further, following the acquisition in May, the integration of Roberto Coin is progressing to plan. The company will publish its half-year results on December 5.
On AIM, Craneware gained 7.5%.
The Edinburgh-based provider of software solutions promised another positive year after delivering full-year results ahead of expectations.
In the financial year that ended June 30, pretax profit increased 20% to $15.7 million from $13.1 million a year prior. Adjusted earnings before interest, tax, deprecation and amortisation rose 6.2% to $58.3 million from $54.9 million, ahead of previous guidance of $58 million. Revenue rose 8.8% to $189.3 million from $174.0 million, compared with previous guidance of at least $188 million.
By contrast, First Property Group lost 25%.
The London-based investor and property fund manager’s shares fell after it announced an open offer to raise just under £3.0 million before expenses, through the issue of 37.0 million shares at 8 pence each.
In the year-to-date, First Property’s shares are down 27%. It has a market cap of £15.3 million.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.4%, the S&P 500 index down 0.5%, and the Nasdaq Composite down 0.7%.
In the US on Monday, financial markets were closed for Labor Day.
While Wall Street took the day off, US President Joe Biden and Kamala Harris campaigned together for the first time Monday after she replaced him as candidate.
Seeking to attract voters in the key battleground state of Pennsylvania, the pair met union members in Pittsburg. The Labor Day event at the International Brotherhood of Electrical Workers union underlined how Biden will play a role in the campaign in the final months before the vote.
‘We have made a lot of progress, and Kamala and I are going to build on that progress, and she’s going to build on it,’ Biden said. ‘I’ll be on the sidelines, but I’ll do everything I can to help.’
Brent oil was quoted at $75.66 a barrel at midday in London on Tuesday, down from $76.92 late Monday.
Gold was quoted at $2,494.50 an ounce, lower against $2,500.29.
Still to come on Tuesday’s economic calendar, there are several speeches from European Central Bank Members, and a handful of US data this evening, including manufacturing PMI and the Redbook index.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
