- Oil stocks rise on Middle East tensions
- Fed, BoE policy decision out this week
- Ryanair dips after trimming profit forecast
- FTSE 100 up 0.2%, FTSE 250 off 0.6%
Jan 29 (Reuters) - The UK's blue-chip share index hit a near three-week high on Monday, as energy stocks rose on escalating tensions in the Middle East while a level of caution persisted ahead of major central bank decisions and earnings later this week.
The FTSE 100 edged 0.2% higher to touch its highest level since Jan. 11, as shares of oil majors BP and Shell rose nearly 2%.
Crude prices , eased after surging earlier following a drone attack on U.S. forces in Jordan added to worries over supply disruption in the Middle East as Houthi rebels stepped up their attacks on vessels in the Red Sea.
The UK's domestically oriented FTSE 250 dipped 0.6%.
Both the FTSE indexes notched their first weekly gain of the year on Friday, aided by upbeat earnings reports as well as hopes of more stimulus for China's economy.
Investors are awaiting rate decisions from the U.S. Federal Reserve and the Bank of England (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 fell to 3.9% in November and 3.5% in December from 4.2% in October, as per a survey that will help the BoE decide whether to signal a move towards rate cuts.
Ryanair slipped 2.9% after the airline operator trimmed 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.
Other airlines including British Airways owner IAG, Wizz Air and EasyJet dipped in morning trade.
Schroders fell 4.4% 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.
Vape distributor Chill Brands Group slumped 28.2% after the UK government looked to ban the sale of disposable vapes to prevent their use by children. Vaping supplier Supreme fell 8.1%.
Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips and Shinjini Ganguli
Source: Reuters