A tough day for stocks as US data continues to deteriorate. The FTSE 100 fell sharply, driven by declines in mining and oil stocks following a further drop in US manufacturing activity. The FTSE 100 index closed down 0.8% at 8,298.46, while the FTSE 250 also ended down 0.8% at 20,808.56. The AIM All-Share slipped 0.6% to close at 762.39.

In the US, stock markets were similarly down at the London close, with the Dow Jones Industrial Average losing 1.0%, the S&P 500 falling 1.3%, and the Nasdaq Composite dropping 2.2%. Data from the US showed that the manufacturing sector continued to deteriorate in August, with reports indicating that factories were cutting staff due to a slump in new orders. The S&P Global Manufacturing Purchasing Managers’ Index (PMI) dropped to 47.9 points in August, down from 49.6 in July, indicating the most significant decline in US factory activity since the start of the year.

In London’s FTSE 100, a drop in oil prices weighed heavily on major players like BP and Shell, which fell 3.3% and 2.5%, respectively. Mining stocks were also hit hard, with Glencore, Anglo American, and Antofagasta declining by 4.2%, 4.8%, and 5.4%, respectively.

Among gainers, Ashtead Group rose 1.0% after reporting a pretax profit of $544 million for the first quarter ended July 31, despite a 7% decline from $585 million a year prior. Revenue increased by 2% to $2.75 billion, while rental revenue grew 7% to $2.54 billion. Ashtead expects full-year rental revenue growth of 5% to 8%, with capital expenditure projected between $3.0 billion and $3.3 billion.

In the FTSE 250, Watches of Switzerland climbed 6.3% as the company reaffirmed its confidence in meeting its annual guidance. The retailer noted strong demand for luxury brands in both the UK and US markets, despite previous challenging economic conditions. The integration of Roberto Coin, acquired in May, is also progressing as planned.

On AIM, Craneware surged 7.7% after reporting full-year results that exceeded expectations. The software solutions provider posted a 20% increase in pretax profit to $15.7 million for the year ended June 30, with adjusted earnings rising 6.2% to $58.3 million. Revenue also grew 8.8% to $189.3 million, surpassing earlier guidance.

Conversely, First Property Group saw its shares tumble 11% following the announcement of an open offer to raise nearly £3.0 million through the issuance of 37.0 million shares at 8 pence each.

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