(Alliance News) - Stocks in London were seen higher early on Tuesday, as investors prepare for manufacturing purchasing managers' index data from both the US and Canada following Labor Day.
In early corporate news, Ashtead Group posted a quarterly decline in profit, but increase in revenue, and also announced the resignation of its chief financial officer.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 5.7 points, or 0.1%, at 8,364.80
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Hang Seng: down 0.5% at 17,613.71
Nikkei 225: down 0.2% at 38,618.72
S&P/ASX 200: closed down 0.1% at 8,103.50
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US financial markets were closed on Monday for Labor Day
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EUR: down at USD1.1056 (USD1.1068)
GBP: down at USD1.3118 (USD1.3145)
USD: down at JPY146.37 (JPY146.95)
GOLD: down at USD2,494.60 per ounce (USD2,500.29)
OIL (Brent): up at USD77.34 a barrel (USD76.92)
(changes since previous London equities close)
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ECONOMICS
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Tuesday's key economic events still to come:
09:30 EDT Canada manufacturing PMI
14:00 CEST eurozone European Central Bank supervisory board chair Claudia Buch speaks
16:00 CEST eurozone European Central Bank member of supervisory board Kerstin af Jochnick speaks
18:45 CEST Germany Deutsche Bundesbank President Joachim Nagel speaks
09:00 CEST Spain unemployment
09:00 CEST Switzerland GDP
08:55 EDT US Redbook index
09:45 EDT US manufacturing PMI
10:00 EDT US ISM manufacturing PMI
10:00 EDT US total vehicle sales
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US President Joe Biden and Kamala Harris campaigned together for the first time Monday, in a public display of teamwork after she replaced him as candidate and revived Democratic election hopes. Seeking to attract voters in the key battleground state of Pennsylvania, the pair met union members in Pittsburg before standing side-by-side to speak to about 600 supporters. Biden repeatedly name-checked Vice President Harris, who is in a close race to beat Donald Trump to the White House on November 5. "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." 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.
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Pressure mounted Monday on Israeli Prime Minister Benjamin Netanyahu as a major strike was held and US President Joe Biden said he was not doing enough to secure the release of Gaza hostages, following the killing of six captives. The UK also said it would suspend some arms exports to Israel, citing a "clear risk" that they could be used in a serious breach of international humanitarian law. Israeli Defence Minister Yoav Gallant posted on X that he was "deeply disheartened" by London's decision.
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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. This was the same pace of decline seen in the three-months to July.
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EU chief Ursula von der Leyen has made her first picks for her top team, with the key economy vice-president job going to Italy's far-right nominee, German newspaper Die Welt reported Tuesday. Von der Leyen is expected to unveil her proposed line-up following a Friday deadline for states to name their nominees. Die Welt said she is set to give Raffaele Fitto from the far-right Brothers of Italy party the executive vice-president portfolio in charge of the economy and post-pandemic recovery. The job would oversee how the bloc's pandemic recovery fund worth hundreds of billions of euros is deployed. Fitto is Rome's minister for European affairs. Others to be named EU vice presidents include Valdis Dombrovskis, from Latvia and currently EU's trade chief. His role will be EU expansion and Ukraine reconstruction, according to the report.
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UK government moves to help nationalise train operation should include establishing an independent pay review process for public sector rail workers, according to the Tories. Shadow transport secretary Helen Whately said the proposal would "take the politics out of pay" and be in line with arrangements in place for teachers, nurses and the armed forces. The proposed amendment to the Passenger Railway Services (Public Ownership) bill follows the new Labour government making a multi-year pay offer to train drivers in a bid to resolve long-running pay disputes and end strikes. It would ensure that appointing a public sector train operator as existing contracts expire becomes the default position rather than a last resort. This would mean privately-owned operators such as Avanti West Coast, East Midlands Railway, Great Western Railway and Thameslink would be gradually brought into public ownership.
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An "unprecedented coalition" of councils in England has called for an emergency injection of GBP644 million from the government to stabilise their housing accounts and prevent investment in new homes being delayed or cancelled. After Deputy Prime Minister Angela Rayner promised a "council housing revolution", 100 local authorities have now warned that the financial model for council housing finances is "broken", with a GBP2.2 billion "black hole" in councils' dedicated budgets expected by 2028. The local authorities said the previous government did not honour a 10-year deal agreed in 2012 which would have guaranteed rental incomes and costs were predictable.
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BROKER RATING CHANGES
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Berenberg raises Hikma Pharmaceuticals to 'buy' (hold) - price target 2,400 (2,100) pence
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Barclays raises HGCapital trust to 'overweight' (equal weight) - price target 600 (496) pence
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Barclays raises Oakley Capital Invest target to 660 (645) pence - 'overweight'
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COMPANIES - FTSE 100
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Ashtead Group said that for the first quarter ended July 31, pretax profit fell 7% to USD544 million from USD585 million a year prior. Revenue, however, was up 2% to USD2.75 billion from USD2.70 billion, while rental revenue rose 7% to USD2.54 billion from USD2.38 billion. Chief Executive Brednan Horgan said: "We are in a position of strength, with the operational flexibility and financial capacity to capitalise on the structural growth opportunities we see for the business. We have started the year well and expect full-year results will be in line with our expectations." 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.
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COMPANIES - FTSE 250
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Watches of Switzerland 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.
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OTHER COMPANIES
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Falcon Oil & Gas announced that it plans to change its corporate name to Beetaloo Resources Corp, and to consolidate its share capital on the basis of up to 250 pre-consolidation common shares for each one post-consolidation common share. Both changes are subject to shareholder approval at a special meeting of shareholders to be held on October 29, and all necessary regulatory approvals including the approval of TSX Venture Exchange and AIM. Falcon said that it wishes to proceed with the consolidation in order to pursue a listing on a US stock exchange during the first half of 2025.
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By Holly Beveridge, Alliance News senior reporter
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