03.08.202608:04:00UTC+00FTSE 100 Trades Cautiously on Monday

The FTSE 100 was volatile on Monday, with gains limited by weakness in energy shares and AstraZeneca. Market sentiment improved after US President Donald Trump said new talks with Iran would begin today, boosting hopes of reduced geopolitical tensions. Optimism over a potential agreement that could reopen the Strait of Hormuz pushed crude oil prices lower, dragging on oil majors Shell and BP, which each lost more than 2%.

AstraZeneca fell more than 6% following reports that the pharmaceutical group had held talks with US drugmaker Bristol Myers Squibb over a possible merger. In contrast, housebuilders Persimmon and Barratt Redrow climbed more than 4% as markets pared back expectations for further Bank of England interest rate rises. Banks also advanced, while aerospace engineer Rolls-Royce gained around 3.8%.