London stocks opened higher on Monday, with the FTSE 100 climbing 0.2% to 9,738.46, the FTSE 250 edging up 0.1% to 22,187.34, and the AIM All-Share rising 0.2% to 773.79.
Investors are bracing for a key Bank of England decision and a wave of earnings later in the week.
Softer inflation data has made the decision more finely balanced, with some analysts warning that a quarter-point rate cut cannot be ruled out.
While headline inflation remains at 3.8%, policymakers may prefer to wait for clearer signs that price pressures are easing before acting. In New York on Friday, Wall Street finished modestly higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.6%.
Author's summary: FTSE rises ahead of BoE decision.