FTSE 100, FTSE 250 flat
BAE Systems fall after BofA Global Research cuts to neutral
Diploma jumps after giving an upbeat forecast

May 13 Reuters London39;s FTSE 100 was flat on Monday as gains in travel and leisure were offset by losses in defence stocks as investors await more corporate updates and comments from the Bank of England BoE officials on the state of the British economy.

The bluechip FTSE 100 was trading flat after hitting record highs in 11 out of the previous 13 sessions as the BoE took a dovish stance, while a weaker pound supported the overall rally.

The midcap FTSE 250 was also muted and the pound was little changed at 1.2524.

The optimism is still there, but the fizz has been taken out of it a bit, they39;re investors sort of waiting for the next bit of data, which can pop the next cork, said Danni Hewson, head of financial analysis at AJ Bell.

BAE Systems fell 2.8 after BofA Global Research39;s downgrade to neutral from buy. The stock weighed on the aerospace and defence sector, making it one of the top losers among the FTSE 350 sectors.

Focus this week will shift to labour market data due on Tuesday and on comments from BoE39;s chief economist Huw Pill and external member of the monetary policy panel Megan Greene for clues on the timing of the policy easing. Investors will also parse U.S. inflation data to gauge the Federal Reserve39;s interestrate path.

If we see another month where unemployment is up slightly, that will sort of push the…