Mobico falls after lowering annual profit forecast
Kingfisher falls on outlook warning
FTSE 100 flat, FTSE 250 off 0.5

March 25 Reuters UK shares were muted on Monday in a holidayshortened week as markets digest recent gains on dovish pivots from major central banks, while Direct Line dropped as Belgian insurer Ageas abandoned its buyout plans for the firm.

The bluechip FTSE 100 held firm at 7,931.67 points by 0850 GMT.

The midcap FTSE 250 was down 0.5, led by a 12.6 slump in British home and motor insurer Direct Line as Belgian insurer Ageas SA said it did not intend to make further offers for it after two failed attempts.

The stock was set for its worst day in over a year, and dragged the nonlife insurance sector down 1.7.

UK stocks ended higher last week, with the FTSE 100 index notching its highest close in a year as investors cheered the Bank of England and the U.S. Federal Reserve signalling interest rate cuts this year.

Focus will now shift to the U.S. core personal consumption expenditure price index, the Fed39;s preferred inflation measure, due on Friday, to further gauge the trajectory of inflation and interest rates.

The PCE report is going to take a little bit of a backseat given that we just had the Fed dot plot last week reiterating three cuts, said Ben Laidler, Global Markets Strategist at eToro, adding that it would likely be a bit of a nonevent unless there39;s a real outlier surprise.

Energy shares rose 0.6 as crude prices climbed on…