Market Analysis

London's FTSE 100 traded flat on Monday as investors adopted a cautious stance ahead of key U.S. inflation data, while declines in oil and copper prices added to market uncertainty.

The blue-chip FTSE 100 held steady following a recent two-week high reached on Friday, while the mid-cap FTSE 250 edged down by 0.1% as of 0709 GMT.

Declines in the energy sector mirrored lower oil prices, influenced by concerns over prolonged U.S. interest rates which bolstered the dollar. Industrial miners also faced pressure, slipping 0.7% amid worries of subdued Chinese demand, pulling down copper prices.

Last Thursday, the Bank of England (BoE) opted to maintain interest rates, with market sentiment now looking towards a potential rate cut in August following recent comments from policymakers.

A recent UK inflation report indicated that headline inflation had eased to 2%, aligning with the BoE's target. In the U.S., attention is on the upcoming personal consumption expenditure (PCE) numbers scheduled for Friday, which are anticipated to show a moderation in inflationary pressures.

Additionally, upcoming UK gross domestic product (GDP) figures will provide further insights into the health of the British economy, following upbeat retail sales data that partially offset optimism from the BoE's latest statements.

In stock-specific news, Prudential saw a 4.6% rise after announcing a $2 billion share buyback program set to conclude by mid-2026. Meanwhile, HG Group shares climbed 4.7% on news of its agreement to sell a portfolio of luxury goods websites to Fraser's Group, which itself saw a modest 0.9% increase in its stock price.

Paraphrasing text from "Reuters" all rights reserved by the original author.