By Shubham Batra and Shristi Achar A
(Reuters) - The UK's benchmark FTSE 100 eked out modest gains on Monday supported by a rise in shares of non-life insurers, while traders refrained from placing large bets ahead of U.S. inflation data later in the week.
The blue-chip FTSE 100 edged 0.1% higher, while the midcap index FTSE 250 slid 0.4%.
Non-life insurers advanced 1.9% and were the top gainers for the day. The index was boosted by a 4.9% jump in Admiral Group (LON:ADML) to the top of FTSE 100 after brokerage Berenberg raised its target price to 2,973p from 2,961p.
Contruction and materials stocks led the declines among sectors, falling 1.6% after UBS cut Breedon Group's stock rating to "Neutral" from "Buy", while Morgan Stanley (NYSE:MS) cut its target price to 547p from 550p.
Breedon's shares slipped 5.2%.
Markets this week are squarely focussed on U.S. consumer prices and domestic labour market data, both due on Tuesday, which would likely guide interest rate expectations from the central banks.
"After January's surprisingly strong 39 basis points (bps) core inflation increase, it will be important to see an in-line, or lower, print for investors to regain confidence that disinflation continues," said Ronald Temple, chief market strategist at Lazard.
"Another reading near 40 bps would delay expectations for the Fed to begin easing in June."
Money markets are currently pricing in about 67 basis points of interest rate cuts from the Bank of England (BoE) this year. [0#BOEWATCH]
A survey showed Britain's labour market slowed sharply in February, as recruitment firms reported their biggest drop in demand for staff from employers since early 2021.
Among other movers, Currys (LON:CURY) slumped 5.4% after U.S. investor Elliott Advisors said it does not intend to make an offer for the electricals retailer.
Marks & Spencer added 1.4%, after RBC Capital Markets upgraded the retailer to "Outperform" from "Sector perform."
Vanquis Banking Group dropped 50.0% to a record low, after the lender warned about materially lower income in 2024 compared to market estimates.