FX.co ★ FTSE 100 Falls on Monday

The FTSE 100 slipped on Monday, dragged lower by a 9% fall in AstraZeneca shares following reports that the British drugmaker had engaged in merger talks with US-based Bristol Myers Squibb. Analysts cast doubt on the merits of the potential tie-up, arguing that it lacked both strategic logic and financial rationale. Energy stocks were another drag on the index as Brent crude fell below $84 per barrel amid optimism that negotiations could reopen shipping lanes through the Strait of Hormuz, easing fears of supply disruptions from the Middle East. BP shares lost more than 0.5% in the session.

By contrast, housebuilders outperformed: Barratt Redrow climbed more than 3%, while Persimmon advanced over 2.5%, as investors scaled back expectations for further interest rate increases from the Bank of England. Banking stocks also moved higher, and Rolls-Royce gained around 2%. Elsewhere, final data confirmed that UK manufacturing activity continued to grow in July, although the pace of expansion moderated even as new orders strengthened.