FTSE 100 Holds Firm Amidst Cautious Market Approach The FTSE 100 index edged higher on Monday, reflecting a cautious approach by investors ahead of this week's flurry of monetary policy announcements from central banks.

At the top of the risers board, Phoenix Group surged after the pensions and savings business upgraded guidance alongside annual results. The company reported that it had reached operating cash generation of £1.4 billion two years ahead of its 2026 target. Phoenix expects to generate excess cash of £1.1 billion across 2024-26.

Retail Stocks Under Pressure However, the retail sector continued to feel the pressure as supermarket stocks remained under scrutiny following Asda's results last week. Asda vowed to focus on pricing and availability as part of significant investment back into the business. The company reported a 3.4% decline in annual like-for-like sales.

Tesco shares fell 9% on Friday before retreating another 4% or 12.7p to 326.5p in today's session. M&S lost another 10.3p to 324.1p, and Sainsbury's weakened 5p to 230p, adding to declines of 5% and 8% respectively before the weekend.

Phoenix Group's Upgraded Guidance Phoenix Group's shares rose 7% after the company upgraded guidance alongside annual results. The company reported that it had reached operating cash generation of £1.4 billion two years ahead of its 2026 target. Phoenix expects to grow the figure by a mid-single digit percentage per year, with the cumulative three-year target up from £4.4 billion to £5.1 billion across 2024-26.

The company's chief executive, Andy Briggs, said: "Delivery will give us the financial flexibility to reduce our leverage, while also sustaining our progressive dividend for shareholders." Adjusted operating profit increased 31% to £825 million, driven by profitable growth in both Pensions and Savings and Retirement Solutions.

Qinetiq Cuts Guidance Amid Near-Term Pressures In contrast, Qinetiq cut guidance amid near-term pressures. The company forecast revenues growth of 2% for the financial year ending this month, down from the high single-digit organic revenue growth seen in January.

The UK defence sector, which represents 50% of group revenues and has greater exposure to longer-duration contracts, has continued to deliver a strong performance. However, Qinetiq experienced further delays to short-cycle contract awards in the UK intelligence sector, which represents about 25% of group revenue.

AstraZeneca Makes $1bn Cell Therapy Acquisition Meanwhile, AstraZeneca announced a deal worth up to $1 billion to buy Belgium-based EsoBiotec. The company's platform empowers the immune system to attack cancers and could offer many more patients access to transformative cell therapy treatments delivered in just minutes rather than the current process which takes weeks.

FTSE 100 Holds Firm Amidst Central Banks' Meetings The FTSE 100 index is set for a flat start to the session as attention turns to an important week for monetary policy announcements from central banks. The US Federal Reserve, Bank of England, and Bank of Japan are among the central banks meeting this week.

Their members are expected to keep interest rates on hold, with their views on the economic impact of recent trade developments the major focus. On Friday, the Dow Jones Industrial Average rallied 1.7%, the S&P 500 index by 2.1%, and Nasdaq Composite by 2.6%. All three benchmarks finished more than 2% lower across the week.

Conclusion The FTSE 100 index edged higher on Monday as investors approached with caution ahead of this week's monetary policy announcements from central banks. Phoenix Group's upgraded guidance sent its shares surging, while supermarket stocks remained under pressure following Asda's results last week. AstraZeneca made a significant acquisition in the healthcare sector, and Qinetiq cut guidance amid near-term pressures.

The FTSE 100 is set for a flat start to the session as attention turns to central banks' meetings this week.