FTSE 100 today: Stocks fall as shop prices slow; AstraZeneca buys Summit stake

This Tuesday, the FTSE 100 experienced a decline as British shop price inflation slowed down. The index closed lower despite the slowing UK shop price inflation, which was a positive sign. However, this was offset by lingering uncertainty over U.S.-Iran relations. AstraZeneca, on the other hand, saw gains after acquiring a $2 billion stake in Summit Therapeutics.

The FTSE 100 index dropped by 0.5%, while Germany's DAX remained unchanged and France's CAC 40 fell by 0.5%. The British pound also depreciated, falling 0.32% to $1.3211. Iran's Revolutionary Guard spokesman, Hossein Mohebbi, criticized U.S. President Donald Trump as a "big liar" in an address to Americans. He also stated that the U.S. should leave the Middle East.

Iran is expecting a response from the U.S. regarding its proposal to reopen the Hormuz Strait. Foreign Minister Abbas Araghchi said that Iran's conditions must be met for the Strait of Hormuz to open. Trump confirmed that U.S. officials had spoken separately to mediators on Monday, rejecting reports that his administration had offered Iran sanctions relief and access to frozen funds.

He called these reports a "hoax." Iran's seven-day plan aimed to end hostilities, unfreeze assets, end oil sanctions, and lift the U.S. port blockade in exchange for reopening the Hormuz Strait. However, Trump rejected this proposal. Economic expert Mohit Kumar from Jefferies noted that the current situation is driven by oil prices, and this could impact all asset classes.

The 10-year U.S. Treasury yield had crossed 5.25%, and the S&P 500 fell by 0.8% on Monday. The British Retail Consortium reported that BRC shop price inflation eased to 1.4% year-on-year in September, slightly lower than the 1.5% forecast. However, the CPI rose to 3.1% in August, and it is expected to exceed 4% in early 2027 due to the Iran war lifting energy prices.