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UK shares began the week on a negative note, as a sell-off in Aston Martin and gains in commodity stocks were counterbalanced by the carmaker’s descent to the bottom of mid-cap stocks following a profit warning. The domestically-focused FTSE 250 midcap index and the FTSE 100 index both experienced a decline (-0.47%). Although the blue-chip FTSE 100 is on the brink of its first monthly loss in three months, it is on course to achieve its fifth consecutive quarterly gain. Following an eight-year peak in July and August, British business confidence experienced a slight decline this month, as concerns regarding the broader economic outlook reached a six-month high, according to a survey. In September, British house prices rose by a higher-than-anticipated 0.7% from August, resulting in an annual growth rate of 3.2%, the quickest since November 2022.In single stock stories, Rightmove’s shares decline 4.8%, making it the top loser on London’s blue-chip index. The UK property portal rejects a fourth takeover proposal from Australian rival REA Group, stating that the $8.29 billion proposal undervalues the company and that shareholder interests would be better served by executing its standalone strategic plan. Rightmove clarifies that it has engaged with REA’s board to the extent it deems “customary and appropriate.” Rightmove’s shares have hit their lowest level since September 2, when REA’s first approach was made public, but have risen around 10% so far this year.British private equity and venture capital firm 3i Group’s shares fall up to 4.3% as short seller Shadowfall Capital and Research takes a multi-million pound short position against the company, according to a report in The Times. 3i values its largest holding, Action, at 14.8 billion pounds, giving Action an overall valuation of 33 billion pounds, but Shadowfall argues Action is significantly overvalued and its profits were temporarily boosted by recent inflation rather than real growth. 3i says it has not been contacted by Shadowfall or seen their report, and has no on-the-record comment. 3i’s stock is among the top losers on the FTSE 100 index, which is down around 0.5%, though the stock is still up 37.2% year-to-date.Aston Martin, the British luxury carmaker, saw its shares drop by 10.8%, making it the top loser on the FTSE Midcap index. The company no longer expects to achieve positive free cash flow in the first half of the year. It has also reduced its 2024 wholesale volumes by around 1,000 vehicles due to supply chain disruptions and persistent weak demand in China. Aston Martin expects its annual adjusted core profit to be slightly below the fiscal year 2023 level. The company also stated that an increasing number of vehicles are taking longer to complete, delaying deliveries. Including the current session’s move, Aston Martin’s shares have declined by approximately 34% year-to-date.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225
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