The FTSE 100 slipped on Tuesday as traders returned to their desks after the summer break and awaited fresh catalysts for equities.

That catalyst could come later this week from the Non-Farm Payrolls – the last jobs report before the Federal Reserve meets to decide on interest rates towards the end of September.

Non-Farm Payrolls are always eagerly anticipated, but August’s reading is particularly important given the volatility that followed July’s jobs report. There have also been downward revisions to prior jobs reports so a weak figure suggesting weakness in the US could send waves through global equities.

There is a feeling of nervousness among traders as we move into September with US and UK stocks near record highs. In recent years, September has brought severe bouts of volatility and with the concerns that sparked a sharp, yet brief, sell off in early August still rumbling in the back ground, some analysts are cautioning we could be in for a bumpy ride this month. 

“There are some tough seasonal trends ahead, as September has historically been a poor month for the S&P 500,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Couple that with political and geopolitical uncertainty, and investors are likely in for a choppy month. US non-farm payroll figures on Friday are the highlight of the week, which could have a meaningful impact on the size of the first Fed cut later this month.”

Investors were provided with some UK data to consider in Retail sales and Barclaycard spending data, although this barely moved the dial. 

Ashtead was among the top risers after the plant hire group announced positive first-quarter results that suggested the group could be turning a corner after a period of soggy growth.

“Sometimes when a company has been under pressure it’s enough that things haven’t got any worse. That has proved to be the case with Ashtead’s latest quarterly results,” said Russ Mould, investment director at AJ Bell.

“While the three-month period could hardly be characterised as stellar, the equipment hire company is sticking with its full-year forecasts.

“Ashtead has been able to eke out some growth and the hit to profit is largely linked to lower levels of used equipment sales, which is not its core business.”

The negative impact of soft Chinese data over the weekend was still evident in UK stocks on Tuesday, with miners Rio Tinto and Antofagasta lingering at the bottom of the leaderboard.

Rightmove was the top faller as investors booked profits after its shares spiked due to a potential takeover.

Majestic Corporation, a sustainable circular economy solutions provider specialising in recycling precious and non-ferrous metals, has announced its plans to accelerate its UK expansion through the acquisition of Telecycle Europe Limited, a specialist e-waste recycling business based in Deeside, UK.

The acquisition, valued at up to £2 million, is set to be completed by 31 December 2024, subject to the delivery of a specified quantity of recyclable materials.

The acquisition aligns with Majestic’s strategic goal to expand its presence in the UK, a market the company believes presents significant growth opportunities in reducing supply chain waste of critical minerals.

In 2021, the UK generated approximately 1.6 million tonnes of e-waste, underscoring the urgent need for effective recycling solutions. By acquiring Telecycle, Majestic aims to address this challenge whilst strengthening its market position.

The acquisition means Majestic will gain a fully licensed and ISO-certified facility at Telecycle’s Deeside plant, providing a wholly-owned UK subsidiary for e-waste collection, sorting, processing, and shipping operations. This move is expected to lead to immediate revenue recognition for the year ending 31 December 2024 as Telecycle is integrated into the enlarged group.

Majestic believes the acquisition will provide operating efficiencies, leading to improved margins for both businesses. It also presents an opportunity to reduce the UK’s supply chain waste of critical and precious metals, including lithium, gold, cobalt, copper, and nickel.

The enhancement of relationships with UK suppliers is anticipated to help grow Majestic’s UK recycling volumes. This strategic move positions Majestic to capitalise on the significant growth opportunities in the UK recycling market whilst contributing to the country’s sustainable waste management efforts.

“We are delighted to have conditionally agreed to acquire Telecycle and expand our UK operations,” said Peter Lai, Executive Chairman of Majestic Corporation.

“The UK market’s commitment to sustainability and recycling makes this Acquisition a crucial driver for future growth. We look forward to integrating Telecycle into Majestic and updating shareholders on our progress.”

Ashtead shares rose on Tuesday after the North American-focused plant hire group announced rising revenue, which bodes well for the company as the Fed cuts rates.

After a decade of bumper growth, Ashtead’s growth outlook has become increasingly unclear amid mixed US construction activity.

However, today results will be a source of encouragement for investors as revenues grew 2% in the group’s first quarter. The company attributed the tick higher in revenue to rising rental volumes and the amount they were able to charge for an average higher.

EBITDA rose 5% but operating profits slipped 2% as a result of higher interest costs. But with the Federal Reserve on the verge of cutting interest rates, this constraint on earnings may be about to ease. 

Ashtead shares were over 4% higher at the time of writing.

 “Equipment hire firm Ashtead has today announced a changing of the guard in terms of its CFO but perhaps more pertinently, a slip in profit in comparison to last year. Ashtead, which services construction, emergency response and events, has seen its numbers hurt by a comparative slowdown in the US, where the company does the lion’s share of its business,” said Adam Vettese, Market Analyst at investment platform eToro.

“Revenue is actually up year-on-year but this was not enough to offset increasing interest and depreciation costs, which we expect to ease as the Fed cuts rates. As such, the firm has maintained its guidance for the rest of the year.”

Although growth concerns may linger, one of the biggest considerations for investors is whether Ashtead remains a London-listed company or decides to follow other firms in switching its listing to the US in pursuit of a better valuation. 

“There is likely to be a fresh round of questions about whether Ashtead is looking to shift its listing to the US after news that the CFO role will be based in the US when Michael Pratt retires in September. Alex Pease will take up the role, and management has confirmed it will likely be based in the US,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

The FTSE 100 slipped again on Monday after poor Chinese data hit London’s many China-leaning shares, including financials and miners.

The weight of declines from stocks such as Rio Tinto, Burberry, Antofagasta, and Prudential more than offset any positivity from a 20% jump in Rightmove after the property portal received a bid from Rupert Murdoch’s

“There’s no September spark for the FTSE 100, with the index trading flat and losing more ground early in the session,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“After a disappointingly lower close on Friday, the footsie remains elusively below its record highs, with mining stocks sinking lower amid China’s ongoing economic troubles.”

China released mixed manufacturing data over the weekend, which pointed to stuttering economic growth at a time when investors are growing increasingly nervous about the country failing to hit its 5% growth target.

Traditionally, the country has been seen as a beacon of hope for global growth, but this simply hasn’t been the case since the pandemic.

More worrying for investors, Chinese authorities seem to be happy to let the troubles with the property market and slowing manufacturing sector run their course.

Market participants have long been accustomed to intervention in the form of stimulus measures. However, the lack of interest by China in supporting its economy is becoming a major headwind for many sectors reliant on the country.

“The world’s second largest economy may be trying to wean itself off its reliance on export demand by stoking domestic consumption,” explained AJ Bell investment director, Russ Mould.

“But this is proving a tricky process and exports were down for the first time in eight months amid weak consumer demand outside of China. This chimes with recent poor numbers from Temu-owner PDD.”

Rightmove

Another high-quality London-listed company could be on the verge of being taken private by an overseas player who clearly sees more value in the company than the UK’s public markets are prepared to attribute it.

Rightmove shares soared on Monday following news that REA Group was considering a bid to acquire the company and add it to its portfolio of Australian property portals.

“The standout name on the FTSE 100’s risers list was Rightmove which moved around 20% higher after Australian group REA confirmed it was considering a takeover of the property portal,” Russ Mould said.

“This news breathed some life into the share price after a static period but don’t expect the company to be snapped up without a fight. Shareholders will be pushing for a generous deal and other potential bidders may throw their hat into the ring with rival proposals.”