London stocks flat ahead of central bank rate decisions

The FTSE 100 closed flat but hit its highest level since January 11 earlier in the session, as shares of oil majors BP and Shell gained around 1.0%

The UK's blue-chip index closed little changed on Monday as gains in precious metal miners were offset by losses in life insurers and investors turned cautious ahead of major central bank decisions and earnings later this week.

The FTSE 100 closed flat but hit its highest level since January 11 earlier in the session, as shares of oil majors BP and Shell gained around 1.0%.

Precious metal miners topped the sectoral chart, increasing 2.0%, and stayed around their two-week highs after gold prices strengthened as escalating tensions in the Middle East lifted demand for the safe-haven asset.

The UK's midcap FTSE 250 slipped 0.1%.

Investors are awaiting rate decisions from the U.S. Federal Reserve and the BoE later this week. While policymakers are widely expected to hold interest rates, traders will closely watch for any commentary on the potential for rate cuts.

The British public's expectations of a drop in inflation for the 12 months ahead declined to 3.9% in November and 3.5% in December from 4.2% in October, as per a survey that will help the Bank of England decide whether to signal a move towards rate cuts.

Ryanair climbed 4.0% after sliding during the session. The budget airline cut its profit forecast for the year ending March, after some online travel agents stopped selling its flights in December, forcing it to cut fares to fill seats.

Ryanair also said it expects fourth quarter to remain its weakest quarter although with Easter coming at the end of March, we might see an end of quarter uplift, said Michael Hewson, chief market analyst at CMC Markets UK.

Schroders dropped 3.7% after Exane BNP Paribas downgraded the asset manager's stock to "underperform", pointing to pressures in its core business as flows remain anaemic and cost pressures stay high.