Clarkson

The FTSE 100 index closed 0.1% lower on Monday, weighed down by a sharp drop in AstraZeneca shares following reports of merger talks with US drugmaker Bristol Myers Squibb. AstraZeneca shares plunged 8.9%, making it the biggest faller in the index, after reports that the two companies are in discussions to create one of the world's largest pharmaceutical firms worth around 400 billion US dollars. Meanwhile, housebuilder stocks rose as UK government bond yields fell, with Vistry Group jumping nearly 8%, and Bellway and Persimmon gaining 2.8% and 2.1% respectively. Clarkson shares surged 8.9%, the most in the London market, after the company issued a positive outlook for full-year results.

The FTSE 100 underperformed European peers on Monday as a 9% slump in AstraZeneca, the index's second-largest company by market value, outweighed broader gains spurred by falling oil prices. The FTSE 100 closed down 0.1% at 10,857.70, while the FTSE 250 rose 1.0% and the AIM All-Share added 0.8%. AstraZeneca's drop followed a Financial Times report that it held merger talks with US peer Bristol-Myers about a potential 400 billion dollar deal, which analysts at Jefferies and Bank of America viewed with skepticism. Brent oil fell to 83.92 dollars a barrel after President Trump said he was holding off on new attacks on Iran, easing inflation fears and pushing US 10-year Treasury yields down to 4.69%. Among other movers, Clarkson surged 9.0% to an all-time high after forecasting full-year performance materially ahead of expectations, while InterContinental Hotels Group fell 2.2% after mixed results from US peer Marriott.