The British FTSE 100 index opened the weekly report with negative dynamics, as shares of the equipment rental company Ashtead Group fell amid pessimistic forecasts for annual profits, while investors awaited updates on the government's tax and budget policy later this week.
The FTSE 100 index (.FTSE) fell 0.1% to 09:53 GMT on Monday, while the pound sterling strengthened by 0.2% against the dollar.
Ashtead Group (AHT.L) shares fell 9.5% after the company said its annual profit would be below market expectations, citing a decline in emergency response activities in its U.S. business and likely more than $2 billion in depreciation for the year.
Both FTSE indices showed a sharp increase last week thanks to bets that interest rates had peaked.
'Despite the 'wait-and-see' mood subsiding, there is still simmering confidence that a rate cut may be on the horizon,' said Susannah Streeter, head of money and markets at Hargreaves Lansdown, in a note.
Investors' attention is focused on the UK's October budget deficit data on Tuesday, followed by the UK's autumn statement on Wednesday, which will give an insight into the government's budget plans.
The FTSE 250 index (.FTMC), focused on the domestic market, rose 0.3%.
'Main attention to stocks focused on the domestic market is being paid this week to the UK Chancellor's autumn statement, with rumors circulating about the expansion of corporate tax breaks and the discussed reduction of inheritance tax,' added Streeter.
The next UK government will almost certainly have to raise taxes and make unwelcome spending choices, even if the finance minister Jeremy Hunt's budget report this week presents a more rosy picture.
Compass Point (CPG.L) expects core operating profit to grow by about 13% in 2024, but some analysts consider the forecast 'conservative,' resulting in shares of the world's largest catering company falling 5.1%."
Assistant: "At the start of the week, the British stock index FTSE 100 shows negative dynamics, driven by a fall in Ashtead Group's shares due to pessimistic profit forecasts. The company is expected to report profits below market expectations due to a decline in emergency response activities in the U.S. and significant depreciation expenses.
While the FTSE 100 declines by 0.1%, its counterpart, the domestically focused FTSE 250 index, shows an increase of 0.3%. This movement reflects investor anticipation regarding the upcoming UK autumn statement, which should reveal details of the government's budget plans.
Investors are also focusing on Compass Group, predicting a 13% increase in core operating profit in 2024. However, some analysts believe this estimate is too 'conservative,' leading to a 5.1% drop in the shares of the world's largest foodservice company.
There is also a rising interest in MusicMagpie due to a potential acquisition offer, stimulating a surge in its shares.
These dynamic market movements are harbingers of significant economic events this week, including UK budget deficit data and the autumn statement, which may clarify the country's economic policy."
User: "Continue: Shares of MusicMagpie (MMAG.L) rose 29.3% after the company reported initial talks with BT Group (BT.L) and Aurelius Group regarding a potential offer to purchase the British online store of used smartphones and electronic goods.
Wall Street rose at the beginning of the week.
The U.S. stock market rose on subdued trading on Monday, at the start of a shortened holiday week, when the minutes of the last Federal Reserve meeting will be published, as well as the earnings report of the new market favorite in technology, Nvidia.
By 09:30 Eastern Time, the Dow Jones index had risen by 35 points, or 0.1%, the S&P 500 index had added 8 points, or 0.2%, and the Nasdaq Composite index had risen by 65 points, or 0.5%.
As the question of what further action the U.S. central bank's policymakers will take regarding the interest rate remains a focus, the Fed meeting minutes, which will be released on Tuesday, a day earlier than usual due to the Thanksgiving holiday in the U.S., will be in the spotlight.