London’s FTSE 100 inched higher on Monday, boosted by energy shares as well as investor optimism around interest rate cuts in the US and the UK, while weakness in Pearson limited gains.

The blue-chip FTSE 100 index was up 0.5%, hitting its highest since early June.

The mid-cap FTSE 250 was flat at 0707 GMT after closing at its highest level in more than two years on Friday.

Energy shares led gains, with a 1.5% increase, as oil prices rose on fears of a widening conflict in the Middle East.

Shell and BP gained over 1% each. Precious metal miners and industrial metal miners also inched 0.4% and 0.7% higher, amid broader gains.

Commodities boost London’s FTSE 100, all eyes on US inflation data

Close to 1,000 lawsuits have been filed against Enfamil formula maker Reckitt Benckiser, Abbott or both in federal or state courts.

Global sentiment was upbeat after tech shares rebounded on Wall Street and a largely in-line US inflation report kept intact bets for a September cut on Friday.

This week, all eyes will be on the US Federal Reserve’s rate decision on Wednesday, where investors expect the central bank to take a dovish stance following a slew of data that supports the trend of cooling inflation in the economy.

A crucial jobs report is also due Friday, which could further influence the Fed’s stance.

The Bank of England’s monetary policy decision will steal the spotlight on Thursday. Market participants have priced in about 56% chances of a cut despite recent data showing sticky services inflation.

US Big Tech companies Microsoft, Apple, Amazon.com and Meta are also set to report their quarterly earnings this week.

Amid corporate updates, education company Pearson fell 3.7% to the bottom of the FTSE 100, despite reporting a 4% rise in first-half adjusted operating profit.