UK Shares Rise Amid Commodity Surge; AstraZeneca Disappoints

UK shares ended higher on Monday, driven by gains in commodity-linked shares, particularly precious metal miners, amidst rising gold prices. Heavyweight energy shares also tracked elevated crude oil prices. However, AstraZeneca fell following disappointing drug trial results. British businesses reported slowed growth, hinting at potential interest rate cuts by the BoE.

In a rebound from the previous session's severe losses, UK shares closed higher on Monday, bolstered primarily by a surge in commodity-linked shares. The blue-chip FTSE 100 saw a 0.4% rise, while the FTSE 250 midcap index added 0.1%. Notably, precious metal miners led the charge with over 2% gains due to gold prices hitting record highs.

Heavyweight energy shares also saw a 0.6% increase, keeping pace with elevated crude oil prices. Despite the overall uptrend, AstraZeneca shares dipped by 1.7% after its experimental precision drug failed to meet expectations in a late-stage breast cancer trial. In contrast, British retailer Currys jumped 8%, buoyed by an optimistic price target revision from brokerage Berenberg.

The economic outlook showed a mixed bag as a survey indicated a slowdown in British business growth this month, citing concerns over potential higher taxes. This slowdown may prompt the Bank of England to contemplate further interest rate cuts, particularly given signs of easing underlying services inflation and slowing employment growth.