The Stoxx 600 pan-European index opened the European markets on Tuesday with a 0.2% decline.
Investor sentiment was dampened by disappointing Chinese trade data, which led to a 1.2% decline in basic resources shares.
The Federal Reserve’s interest rate decision on December 17-18 could be significantly influenced by the US inflation report released Wednesday.
Dow Jones polled economists who expect that the Consumer Price Index will rise 0.3% this November, and 2.7% on an annual basis.
US stock futures were unchanged on Monday night after S&P 500, Nasdaq Composite and Dow Jones retreated.
Chinese shares in Asia posted mixed results, despite gains across the region.
Ashtead pulls down FTSE 100 and plans to move primary listing to New York
Ashtead’s shares dropped more than 10 percent as it cut its profit projection for the full year, citing difficulties in North American construction market affected by high interest rates.
Ashtead Group has also revealed plans to transfer its primary listing from London to the US while maintaining a secondary listing on London.
Ashtead, one of London’s 30 most valuable companies listed on the stock exchanges, stated that moving its main listing to the US will increase “overall liquidlity in the shares group” as it would provide access to American capital markets. It also increases its appeal to US Investors.
Sunbelt Rentals’ owner stressed that North America is where the company has its greatest growth potential.
Ashtead said that the U.S. was the most natural place for long-term listings.
The proposal will be voted on by shareholders at an upcoming general meeting. It is expected that the transition to the new system would take between 12-18 months.
The move is similar to other UK firms such as Flutter Entertainment that have made earlier decisions to transfer primary listings from the UK to the US.
Moonpig shares drop 10% amid gift experiences write-down
Moonpig’s shares fell by 10% following the retailer of online greeting cards reporting delays in its Gift Experiences division.
It cited the challenging economic environment as the main factor for writing off the value of this division by PS56.7million.
The impairment resulted in a net loss of 33 million PS for the six-month period ending on October 31.
Moonpig, however, saw its adjusted profit rise 9%, to PS27.3million, during the same time period. This was due in part to a revenue increase of 10% for its main brand driven by increased order volume.
Despite this setback, FTSE 250 introduced the first ever interim dividend per share of 1p. Following the announcement, shares fell by 25.5p per share to 242p.
Thames Water Issues a Dangerous Warning
Thames Water warned it could exhaust its finances by 2024, unless it secured a PS3billion financial lifeline.
It has struggled to service 16 million clients in London and the Thames Valley while carrying a debt of PS19 billion.
The creditors’ approval of the emergency financing package will be determined by two key court hearings scheduled for December 17th and January 20th.
Thames Water’s CEO Chris Weston expressed cautious positivity, saying, “Today’s news shows further progress in putting Thames Water on a more secure financial footing, as we search for a long term solution to our resilience financial.”
Covalis Capital, which has proposed a PS1-billion cash infusion and plans to divest parts of the utility, is gaining investor interest.
Water regulator Ofwat and the UK Government are monitoring closely developments.
Germany confirms inflation in November at 2.4%
According to Destatis, Germany’s November Harmonized Inflation Rate was 2.4% over the previous year.
This increase is primarily due to rising prices for services, which are partially offset by lower costs of energy.
This original article appeared originally on ICD.
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