Monday Morning Markets: AstraZeneca Slumps as FTSE 100 Cautious, Europe Rallies

London’s blue-chips opened mixed on Monday, with the FTSE 100 initially down before climbing 0.1% while the mid-cap FTSE 250 added 0.5%.

However, continental bourses have fared better so far, with Germany’s DAX up 1.3%, France’s CAC 40 gaining 0.8% and the Stoxx 50 rising 0.7%.

The FTSE 100’s drag came in part from AstraZeneca, which tumbled as much as 7% after the Financial Times reported the drugmaker is in preliminary talks with US rival Bristol Myers Squibb about a potential combination that could create a pharma powerhouse.

Analysts questioned the logic, with Union Investment’s Markus Manns stating that a Bristol tie-up “does not make strategic or financial sense,” warning that past mega-mergers have often destroyed shareholder value.

Oil prices have slid sharply after OPEC+ agreed to lift September output by 188,000 barrels a day and Donald Trump signalled fresh talks with Iran, easing supply-disruption fears tied to the Strait of Hormuz.

Elsewhere, Clarkson plc surged over 11% after record first-half profit and a bullish outlook driven by shipping volatility around Hormuz. RWS Holdings shares have also jumped after the company revealed it has agreed to acquire Acogroup, the parent company of Acolad.

National Grid unveiled a simplified operating model, cutting its executive committee from 13 to 8 members. Savills confirmed completion of its Eastdil Secured acquisition, issuing shares worth roughly 16% of its enlarged capital.

Plus500 launched single-stock futures in the US, and easyJet extended Castlelake’s takeover deadline to August 7 to align with rival bidder Apollo.

FTSE 100 risers: Melrose Industries (+3.96%), Persimmon (+3.93%), Rolls-Royce (+3.77%)

FTSE 100 fallers: AstraZeneca (-6.21%), IG Group (-2.81%), Pearson (-2.39%)

FTSE 250 risers: Clarkson (+11.31%), Vistry Group (+6.03%), Wizz Air (+4.80%)

FTSE 250 fallers: Hansa Investment (-3.57%), Ceres Power (-2.42%), Ithaca Energy (-2.31%)