3rd Aug 2026 09:18
(Alliance News) - Stock prices in London opened mixed on Monday, with the FTSE 100 lagging its European peers as a sharp fall in AstraZeneca shares offset gains elsewhere, while investors also weighed renewed US-Iran diplomacy.
The FTSE 100 index opened up 12.48 points, 0.1%, at 10,880.53. The FTSE 250 was 209.73 points, 0.9%, at 24,184.11, and the AIM all-share was up 4.67 points, 0.6%, at 767.22.
The Cboe UK 100 was marginally lower at 1,080.48, the Cboe UK 250 was up 0.8% at 21,002.82, and the Cboe small companies was down 0.2% at 18,647.15.
In European equities on Monday, the CAC 40 in Paris rose 1.0%, while the DAX 40 in Frankfurt gained 1.2%.
The FTSE 100 underperformed its continental peers, dragged lower by AstraZeneca, which fell 6.4%.
The London pharmaceutical company and New Jersey-based Bristol Myers Squibb have held talks over a potential merger that could value the combined business at around USD400 billion, the Financial Times reported, citing people familiar with the matter.
According to the report, a deal could materialise in the near future, although there is no certainty an agreement will be reached.
If completed, the combination would create the world's fourth-largest pharmaceutical company.
The report follows AstraZeneca's direct listing in New York in June, which fuelled speculation over the drugmaker's US strategy.
Sterling traded at USD1.3464 early Monday, little changed from USD1.3463 at Friday's London equities close. Against the euro, the pound was steady at EUR1.1681. The euro slipped to USD1.1526 from USD1.1535.
Against the yen, the dollar fell to JPY156.75 from JPY159.31 after US President Donald Trump confirmed Washington had intervened alongside Japan to support the Japanese currency, describing the move as "a signal of friendship" that would benefit both the US and the global economy.
In European corporate news, TotalEnergies fell 1.7% in Paris and Shell declined 1.3% in London after the French energy major agreed to acquire Shell's renewable energy business.
TotalEnergies said it expects the acquisition of the 4-gigawatt renewables portfolio to complete by the end of 2026. Separately, it agreed to sell a 50% stake in a portfolio of developed assets to KKR in a deal valuing the business at an enterprise value of EUR1.8 billion.
Back in London, Clarkson topped the FTSE 250, surging 7.6%.
The shipping services firm reported first-half underlying pretax profit of GBP61.5 million, up from GBP39.4 million a year earlier, while pretax profit rose to GBP55.6 million from GBP37.5 million.
Clarkson increased its interim dividend to 35 pence per share from 33p and said it no longer expects 2026 to be weighted towards the second half following an "exceptional" first-half performance. The company now expects its full-year outturn to be "materially ahead" of current market expectations.
easyJet rose 2.2% after extending the deadline for Castlelake to announce a firm takeover offer until Friday, bringing it into line with Apollo Management X's deadline under the UK Takeover Code.
The airline said the UK Takeover Panel approved moving Castlelake's "put up or shut up" deadline from Monday to Friday.
Last month, easyJet agreed in principle to recommend Apollo's 715 pence-per-share cash offer, valuing the carrier at around GBP5.7 billion, and said it was no longer minded to support Castlelake's lower 690p-per-share proposal.
Among smaller caps, BSF Enterprise soared 41%.
The biotechnology company signed binding heads of terms with US-based Imposter LLC to form a joint venture that will commercialise its T-Rex leather in North America.
The venture will focus on small luxury novelty goods, while BSF Enterprise will retain rights to high-volume categories including footwear and automotive interiors.
In Asia on Monday, the Nikkei 225 index in Tokyo closed down 0.9%. In China, the Shanghai Composite fell 0.6%, while the Hang Seng index in Hong Kong rose 0.4%. The S&P/ASX 200 in Sydney closed 0.5% higher.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 up 0.7% and the Nasdaq Composite up 1.0%.
The yield on the US 10-year Treasury was quoted at 4.69%, narrowing from 4.74%. The yield on the US 30-year Treasury was quoted at 5.23%, narrowing from 5.27%.
Brent crude traded at USD83.40 a barrel early Monday, down sharply from USD90.12 late Friday.
Oil prices eased after Trump said fresh negotiations with Iran would begin on Monday after he decided to postpone military strikes in favour of pursuing a diplomatic solution to the conflict, now entering its sixth month.
Trump said Iran, together with US partners Saudi Arabia, the UAE and Qatar, had urged him to delay what he described as "the biggest attack since World War II". He said the talks would focus on reopening the Strait of Hormuz, a vital route for global energy supplies, and ultimately on Iran's denuclearisation.
Meanwhile, data showed German retail sales fell by more than expected in June.
According to the Federal Statistical Office, retail sales declined 1.1% in real terms from May, reversing revised growth of 1.2% in the previous month and coming in weaker than the FXStreet-cited consensus for a 0.5% fall.
In nominal terms, sales dropped 1.2% on the month.
Compared with June 2025, retail sales fell 0.2% in real terms but increased 1.2% in nominal terms.
Gold traded at USD4,061.62 an ounce early Monday, up from USD4,041.68 on Friday.
Still to come on Monday's economic calendar are manufacturing PMI readings from the UK and the US, alongside the US ISM manufacturing PMI.
By Eva Castanedo, Alliance News senior economics reporter
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