London's FTSE 100 flat ahead of US inflation data

The blue-chip FTSE 100 was unchanged after hitting a two-week high on Friday, while the mid-cap FTSE 250 was down 0.1 per cent

London's FTSE 100 was flat on Monday as investors turned cautious ahead of key inflation data in the US, while a downturn in oil and copper prices weighed.

The blue-chip FTSE 100 was unchanged after hitting a two-week high on Friday, while the mid-cap FTSE 250 was down 0.1 per cent at 0709 GMT.

The energy sector dropped 0.3 per cent, in tandem with oil prices, as concerns of higher-for-longer interest rates in the U.S. supported the dollar.

Industrial miners slid 0.7 per cent, as concerns of muted Chinese demand kept traders on the sidelines, dragging down copper prices.

The BoE kept interest rates unchanged on Thursday, with fresh hopes of an August rate cut after comments from policymakers.

A domestic inflation report last week showed that headline inflation in the economy had dropped to 2 per cent - the Bank of England's target.

In the U.S., the personal consumption expenditure numbers (PCE) are due on Friday. Investors are banking on the data to show a renewed moderation in inflation.

Also due are the gross domestic product (GDP) figures in the UK that will shed more light on the state of the British economy, after strong retail sales data on Friday tempered some optimism from the Bank of England's comments.

Prudential added 4.6 per cent after the insurance group said it planned a $2 billion share buyback programme, to be completed by mid-2026.

Shares of HG Group added 4.7 per cent after the ecommerce company agreed to sell its portfolio of luxury goods website to Fraser's Group for an undisclosed sum. Fraser's Group was 0.9 per cent higher.