Britain's top shares look set to remain shackled to their narrow trading range this week, with any action likely to hinge on a trading update from Royal Bank of Scotland and the latest UK interest rate decision.
Although there are few corporate results, developments at retailer Marks & Spencer will remain in the headlines after it rejected retail tycoon Philip Green's bid on Thursday.
Renewed merger and acquisition activity is likely to throw up further potential take-over targets, with Big Food Group, the owner of the Iceland frozen food chain, and furniture maker MFI the latest to come under scrutiny.
But the wider market is likely to remain hamstrung by the prospect of rising rates in the UK and the United States.
It is also affected by concerns that high oil prices, amid security worries in key producer Saudi Arabia following attacks by militants, could choke off the nascent economic recovery.
The FTSE-100 was up 8.7 points, or 0.2 percent, at 4,444.2 by 0903 GMT on Friday, having traded within a range of around 70 points in the last two weeks.
The Bank of England announces its decision on Thursday and is expected to raise interest rates by a further 25 basis points.
Last month the Bank's Monetary Policy Committee voted unanimously to increase the cost of borrowing to 4.25 percent to curb rampant consumer spending and a buoyant housing market.
"The consensus is that UK interest rates are going up this month or next month so that is pretty much discounted. It is the medium-term outlook which is key," said Hilary Cook, director of investment strategy at Barclays Private Clients.
On the corporate front, heavyweight Royal Bank is set to update investors on Wednesday and offer fresh insight into the banking sector, which makes up around a quarter of the FTSE's market capitalisation.
Meanwhile water utility Severn Trent posts full-year results on Tuesday and mid-cap peer Northumbrian Water reports figures on Wednesday.
Also reporting on first-half trading on Tuesday are mid-caps First Choice Holidays and dairy group Arla Foods. Copper miner Antofagasta, in focus amid concerns that booming Chinese demand for commodities is waning, holds its annual general meeting on Wednesday.
The benchmark index itself will be in the spotlight as index compiler FTSE makes its quarterly reshuffle, based on Tuesday's closing share prices.
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