British Shares End Lower Amid Credit, Shop Price Inflation Reports; Vesuvius Surges

11:49 AM EDT, 09/29/2026 (MT Newswires) -- UK stocks ended lower on Tuesday, with the FTSE 100 closing 0.53% in the red, as investors weighed data showing easing shop price inflation and weaker mortgage demand. The British Retail Consortium's survey showed a softening of shop price inflation in the UK to 1.4% year over year in September from 1.5% a month ago, but the figure remained above the three-month average of 1.3%. Analysts expected inflation to remain stable at 1.5%. "Shoppers reset spend in September and sales growth slowed after the hot summer. So many retailers have maintained promotions, and some have introduced price cuts to help drive demand, all of which is helping to keep inflation lower than a year ago. Q4 is expected to bring tighter household budgeting so retailers will still need to absorb cost increases wherever possible," said Mike Watkins, head of retailer and business insight at NIQ. Meanwhile, Bank of England data showed net mortgage approvals for house purchases fell to 54,918 in August 2026 from a revised 55,928 in July 2026, the lowest level since December 2023. The figure, considered an indicator of future borrowing, was below economists' forecast of 56,000. In corporate news, Vesuvius (VSVS.L) said its board is evaluating the latest takeover proposal from Austrian refractory products supplier RHI Magnesita (RHIM.L) of 4.7 pounds sterling in cash per share plus 0.28 new shares for every 10 Vesuvius shares. Shares of the molten metal flow engineering and technology company zoomed up 25.44% in closing trade, while RHI's London-traded shares gained 0.18%. AstraZeneca (AZN.L) agreed to pay $2 billion for 109,000 preferred stock convertible into shares of biopharmaceutical oncology company Summit Therapeutics. Expected to close within a week, the investment will support the development of novel, potential first-in-class bispecific antibody ivonescimab plus antibody-drug conjugates across various tumor types. The stock was 0.59% in the red. Close Brothers Group (CBG.L) climbed 14.72% after the merchant banking group booked a narrower preliminary loss attributable to shareholders for the 12 months ended July 31 of 85.7 million pounds, compared with 100.2 million pounds a year ago. "With all divisions delivering growth in the final quarter, we enter FY 2027 with confidence to achieve our target of 5-10% p.a. growth through the cycle," said Chief Executive Mike Morgan. "The progress we have made this year gives me confidence in our strategy and I remain fully committed to returning the group to double-digit returns by FY 2028, rising thereafter."