London’s main stock indexes opened lower on Tuesday after subdued economic data from China dented global sentiment, while equipment rental firm Ashtead’s shares slumped on weak revenue outlook.
The blue-chip FTSE 100 index was down 0.8% by 0721 GMT, while the FTSE 250 index dipped 0.4%.
Asian and European markets, overall, came under pressure after data showed China’s services activity expanded at the slowest pace in eight months in August as weak demand continued to dog the world’s second-largest economy and stimulus failed to meaningfully revive consumption.
Investors will keenly watch services sector data for the UK and the eurozone, due later in the day. Ashtead Group’s shares fell 5.2% to the bottom of FTSE 100 after the company lowered its annual UK rental revenue growth forecast, citing softening market conditions.
B&M European Value Retail dropped about 6% after J.P. Morgan downgraded the retailer’s stock to “underweight.” Overall, retailers declined 1.8% after Barclays data showed British consumer spending growth lost pace last month.
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