London’s FTSE 100 experienced an uptick on Tuesday, buoyed by the performance of pharmaceutical stocks following AstraZeneca’s decision to acquire a $2 billion stake in Summit Therapeutics, aimed at furthering cancer research.
The blue-chip FTSE 100 index rose 0.34% to 10,721.48 points by 0925, while the midcap FTSE 250 climbed 0.24%.
- Pharma sector opens new tab advanced 1.5%. AstraZeneca gained 1.7% to a two-month high after it announced a $2 billion investment in Summit Therapeutics and a collaboration on a series of studies testing their cancer treatments together. Peer GSK experienced an increase of 1.7%.
- Meanwhile, industrial metals rebounded by 1.3% after a decline of more than 1% on Monday, reflecting a recovery in copper prices. Miners Glencore and Anglo American added 1.6% and 1.7%, respectively.
- Oil prices rose, leading traders to sharply reprice interest rate expectations and keeping global bond yields at multi-decade highs.
- Still, the yield on the British benchmark 10-year gilt eased on Tuesday after climbing to its highest level since 2007 in the previous session.
- Among other movers, Vesuvius surged 21.7%, topping the FTSE 250 after Austria-based RHI Magnesita N.V proposed to buy the metal flow engineering firm in a cash-and-stock bid.
- British American Tobacco slipped 1.7% after warning its annual growth is likely to come in at the lower end of its forecast range.
- Close Brothers opened a new tab, experiencing a notable increase of 11.2% following the announcement of an annual adjusted operating profit of £120.3 million, surpassing the company-compiled consensus of £111 million.
- On the data front, British shop price inflation experienced a modest deceleration in September, even amid the cost pressures faced by retailers stemming from the Iran conflict, as indicated by a survey from the British Retail Consortium. This has led to increased calls for enhanced government support.
- Meanwhile, investors are poised for the release of second-quarter GDP data later this week, seeking insights into the overall health of the UK economy.
