Ashtead, commodity stocks drag FTSE 100 to near three-week lows

Britain's blue-chip stock index fell to a near-three week low on Tuesday, dragged down by Ashtead Group and commodity-linked shares, while telecommunications testing firm Spirent surged nearly 60% following a buyout deal. The blue-chip FTSE 100 slipped 0.4% by 0815 GMT, touching its lowest level since Feb. 16.

Britain's blue-chip stock index fell to a near-three week low on Tuesday, dragged down by Ashtead Group and commodity-linked shares, while telecommunications testing firm Spirent surged nearly 60% following a buyout deal.

The blue-chip FTSE 100 slipped 0.4% by 0815 GMT, touching its lowest level since Feb. 16. Shares of commodity majors such as BP, Shell and Glencore fell about a percent each as oil and metal prices dipped after pledges by China to transform its economy amid stuttering growth since the COVID pandemic failed to impress investors.

Ashtead dropped 6.1%, the biggest loser in the FTSE 100, after the British equipment rental firm forecast full-year group rental revenue at the lower end of 11%-13% growth range. The mid-cap FTSE 250 index dipped 0.1%.

Shares of Spirent Communications jumped after U.S.-based communications equipment firm Viavi Solutions Inc agreed to buy the British firm in a deal valued at about 1.01 billion pounds ($1.28 billion). Inchcape fell 7.6% after the car distributor said it expects "moderated growth" in the short term.