The FTSE 100 Index Closes 0.14% Lower

The FTSE 100 Index decreased 15 points or 0.14 percent on Monday to close at 10853 points. The decline was led by AstraZeneca (-9.25%), IG Group Holdings (-3.46%) and Coca-Cola (-2.71%). On the upside, the strongest performers were ICG (3.65%), Smith & Nephew (3.43%) and Barratt Redrow (3.38%).

The FTSE 100 edged lower on Monday, pressured by a 9% decline in AstraZeneca shares, after reports that the British drugmaker had held merger discussions with US-based Bristol Myers Squibb. Analysts questioned the potential deal, arguing that it lacks both strategic and financial justification. Energy stocks also weighed on the index after Brent crude slipped below $84 per barrel amid optimism that negotiations could help restore shipping through the Strait of Hormuz, easing concerns over Middle East supply disruptions. BP shares declined more than 0.5% in response. In contrast, homebuilders outperformed, with Barratt Redrow rising over 3% and Persimmon gaining more than 2.5%, as investors pared expectations for further Bank of England interest rate hikes. Banking stocks also advanced, while Rolls-Royce added around 2%. Meanwhile, final data showed UK manufacturing activity continued to expand in July, although the pace of growth slowed despite stronger new orders.

The FTSE 100 fluctuated on Monday, with gains capped by weakness in energy stocks and AstraZeneca. Investor sentiment improved after US President Donald Trump said fresh talks with Iran would begin today, raising hopes of easing geopolitical tensions. Optimism surrounding a potential agreement that could reopen the Strait of Hormuz pushed crude oil prices lower, weighing on oil majors Shell and BP, which both fell more than 2%. AstraZeneca dropped over 6% after reports that the pharmaceutical group had held discussions with US drugmaker Bristol Myers Squibb about a possible merger. In contrast, homebuilders Persimmon and Barratt Redrow gained more than 4% as markets scaled back expectations for further Bank of England rate hikes. Banks also advanced, while aerospace engineer Rolls-Royce rose around 3.8%.