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UK Shares Start Week Downbeat; AstraZeneca Shares Data from Lung Cancer Trials

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London's FTSE 100 declined on Monday, closing 0.20% in the red, amid concerns over the expiration of the interim US-Iran ceasefire and ahead of a busy week of UK economic data.

With discussions over peace and transit through the Strait of Hormuz at a standstill, US President Donald Trump warned Americans to brace for persistently high fuel prices. The US also explored new sanctions on Iran, while Israel attacked Lebanon over the weekend. Yet, Iran threatened that the waterway will remain blocked until the US admits defeat.

On the macro calendar, labor data is due Tuesday, July inflation print on Wednesday, the industrial trends report on Thursday, and consumer confidence, retail sales, and August PMI on Friday.

"We expect UK headline inflation to rise from 2.6% in June to 2.9% in July - 10 [basis points] above the [Bank of England's] forecast," BofA Global Research said. "The UK unemployment rate should fall to 4.8%, but private regular wage growth is likely to move a tad lower, too. We continue to see the central bank on hold in 2026, although risks are tilted to a hike later this year."

In corporate news, drugmaker AstraZeneca (AZN.L) gained 0.73% after separate phase 3 trials of the Tagrisso-Orpathys combination treatment and Enhertu showed improved progression-free survival of certain lung cancer patients. Meanwhile, the drugmaker terminated another phase 3 trial evaluating volrustomig in combination with chemotherapy to treat metastatic non-small cell lung cancer.

"This trial fail, while high risk, brings AZN pipeline risk back into focus following high profile Wainua PIII fail and recent high profile media speculation for a [Bristol Myers Squibb] merger. Investors have been consistently more cautious of AZN's bispecific strategy (this and PD1/TIGIT) and may further investor caution on strength of oncology pipeline into an oncology patent cliff (Lynparza 27E, Imfinzi 31E, Calquence & Tagrisso 32E)," BofA said in another note.

HSBC (HSBA.L) raised $6.75 billion from the issuance of three series of senior unsecured notes intended for listing on the New York Stock Exchange. The lender also issued SG$450 million in fixed-rate resettable notes on the London bourse's main market. The stock was 0.43% in the green at the session's close.

Deutsche Bank Research reduced Entain's (ENT.L) price target to 9.14 pounds sterling from 9.5 pounds, with a buy rating. "Entain reported 1H EBITDA of GBP479m (-2% yoy), 3% ahead of company-compiled consensus of GBP464m (DBe GBP452m). UK online revenue grew 13% (c/fx), ahead of peers which have recently reported. Australia (+13%) was the other standout region which has seen three consecutive quarters of market share gains. In total 1H online revenue +7%, at the top end of 5-7% FY guidance," analysts said. The sports betting and gaming group was down 0.29%.

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Tadawul Shares End Sunday Higher; Multi Business Group Ticks Up

The Tadawul All Share Index closed Sunday 0.89% in the green as investors digested the latest geopolitical developments across the globe.Ukraine and Russia launched back-and-forth attacks on Sunday. The missile and drone attacks resulted in injuries, at least one casualty, fires, and property damage, Reuters reported.In other news, market watchers are still focusing their attention on the updates regarding the US-Iran peace talks and the reopening of the Strait of Hormuz, both of which have stalled. The Middle Eastern country said that the talks will resume if the US fulfills its requirements.Back at home, Twareat Medical Care (SASE:9627) shares closed flat as it logged a 139.37% surge in attributable net profit, while sales rose 65.08% in the six months ended June 30."The company's revenues for the first half of 2026 increased to 149.7 million SAR, compared to 90.7 million SAR for the same period of the previous year, an increase of 59 million SAR, representing 65% growth. This increase is attributed to the execution of a new project for the National Unified Procurement Company (NUPCO), in addition to the commencement of new medical service contracts in the Eastern Region," the medical services company said in its report.Meanwhile, the board of Multi Business Group (SASE:9619) decided to distribute a dividend of 0.04 riyal per share for the first half of 2026. The company paid 0.06 riyal per share a year ago. Shares of the building contracting and maintenance services company closed 3.39% higher.Looking ahead in the week, the local economic calendar will be empty except for the release of the kingdom's June short-term business statistics on Thursday.

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Asia Markets

US Equity Indexes Mixed This Week After Soft Inflation Prints, Slumping Retail Sales Set to Restrain Fed Policy Hawks

US equity indexes were mixed this week as easing inflation and a drop in retail sales boosted the odds for a monetary policy pause in September, while the Trump administration signaled a pivot toward maximum economic pain on Iran.* The S&P 500 closed at 7,785.76 on Friday versus 7,709.08 a week ago. The Nasdaq Composite stood at about 26,729.16, compared with 26,348.02 a week earlier, and the Dow Jones Industrial Average ended lower at 53,732.41, versus 53,885.02 at the end of last week.* Among firms with market capitalizations exceeding $200 billion each, three of the 10 worst performers were in the equal-weighted Dow, according to data compiled by Finviz. The leader among the Dow laggards was Cisco (CSCO), down 8% this week, as fiscal Q4 services revenue missed expectations and adjusted product margin declined.* Sandisk (SNDK) said it expects sales to grow in the mid-to-high teens from fiscal 2028 through fiscal 2030. Wells Fargo and RBC Capital Markets lifted price targets for the company. Shares soared 35% this week.* Across the three indexes, consumer cyclicals, basic materials, and communication services led underperformers while energy and technology topped the gainers.* Both headline and core consumer and wholesale price inflation rates declined from a year ago in July.* Retail sales slid unexpectedly in July, the most since May 2025, after rising in the previous month.* Following the inflation and retail sales data, the probability of the Federal Reserve extending its policy pause in September stood at 67% Friday, up from 55% a week ago, according to the CME FedWatch tool. The remaining 33% likelihood was for a 25-basis-point increase, down from 44% a week earlier.* Treasury Secretary Scott Bessent said the US plans to unveil measures on Iran next week that have "never been seen," CNN reported. US Secretary of Defense Pete Hegseth said the US can sustain its blockade against Iran "indefinitely," Al Jazeera, a Middle Eastern broadcaster, reported.

Dow JonesNasdaq CompositeS&P 500$CSCO
Asia Markets

Update: US Equity Indexes Fall After Retail Sales Drop Most in 14 Months, Crude Oil Rises as Iran Warned Against Economic Pain

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes retreated after retail sales posted the steepest drop since May 2025, while crude oil rose amid the Trump administration's plans to impose unprecedented economic pain on Iran.The Nasdaq Composite fell 0.3% to 26,729.16, the S&P 500 slipped 0.2% to 7,785.76, and the Dow Jones Industrial Average declined 0.2% to 53,732.41 on Friday. Technology and consumer discretionary were among the steepest decliners, while energy led gainers.Retail sales slid 0.6% amid declines in spending on motor vehicles and at gas stations, following a 0.2% increase in June, the Census Bureau reported Friday. The consensus was for 0.1% growth, according to a survey compiled by Bloomberg.The probability of the Federal Reserve extending its policy pause to September jumped to 68% by Friday afternoon, from 56% a week ago, according to the CME FedWatch tool, building on gains after data this week showed consumer and wholesale price inflation rates, both headline and core, declined year over year in July."For the Fed, coupled with a weaker-than-expected jobs report last month, and some indications of cooling inflation, albeit from extremely elevated levels, a more moderate consumer perpetuates the expectation of a steady pace of policy for some time," Lindsey Piegza said in a note. "While not entirely removed, the more recent slew of increasingly moderate data will mitigate the sense of urgency for the Fed to adjust policy higher."The University of Michigan's preliminary consumer sentiment index fell to 51.0 in August from 55.2 in July, below expectations for a much smaller decrease to 55.0 in a Bloomberg-compiled survey.Respondents saw one-year inflation expectations at 4.3%, up from 4.2% in July, while five-year inflation expectations remained at 3.3% for the third straight month.Most US Treasury yields rose, with the 10-year yield up 4.3 basis points to 4.68%. The two-year marched 2.5 basis points higher to 4.17%.The US will soon announce unprecedented economic measures against Iran, Treasury Secretary Scott Bessent said, intensifying the Trump administration's effort to force Tehran's capitulation after almost six months of war, according to a Bloomberg report."Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country," Bessent was cited as saying in an interview with Newsmax on Thursday. The move will be part of a "one-two punch" that includes the continued blockade of Iran's ports, he added.Transit through the Strait of Hormuz appeared to grind to a near standstill on Friday after two more ships were attacked at the chokepoint, Reuters reported. The Abu Dhabi National Oil Company from the United Arab Emirates said its vessels were attacked on Thursday evening, the news report said, adding that the UAE government blamed Iran, which made no immediate comment.Crude oil futures rose, with the front-month US West Texas Intermediate contract up 1.3% to $82.32 per barrel. The global benchmark North Sea Brent jumped 1.6% to $88.50 per barrel.Applied Materials (AMAT) shares retreated 5.1%, among the worst performers on the S&P 500 and the Nasdaq, after the company reported fiscal Q4 earnings late Thursday.Sandisk (SNDK) shares jumped 7.4%, among the top gainers on the S&P 500 and the Nasdaq, after Wells Fargo and RBC lifted their price targets for the company.Gold futures edged up 0.3% to $4,431.5, while silver futures slipped 0.2% to $64.88.

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