Defensive stocks lift FTSE 100 at start of pivotal week for central banks

Sept 14 (Reuters) - London's FTSE 100 rose on Monday as investors flocked to defensive sectors such as healthcare and consumer staples, while government bond yields resumed their advance in a week packed with central bank decisions.

The blue-chip FTSE 100 index closed up 0.4% at 10,697.57 points. The midcap FTSE 250 slipped 0.6% to 23,834.48 points, its lowest close in more than a month. 

• Oil prices rose about 3% after new strikes on Saudi Arabian infrastructure and Gulf shipping. Oil majors Shell and BP gained about 1% each. [O/R]

• Investors flocked to defensive sectors considered more insulated from economic cycles. Pharma stocks rose 3.8%, with GSK gaining 4.7% after it announced positive results for two lung cancer drugs: Jideytro and Ris-Rez.

• Consumer-facing personal care, drug and grocery and beverages added 2.8% and 2.6%, respectively.

• British government bond yields ground higher once again on Monday, hitting new multi-year highs across maturities.

• Heavyweight banks and rate-sensitive homebuilders shed 1.4% and 2.2%, respectively.

• Meanwhile, CEOs of top AI labs including OpenAI and Anthropic called for slower development of the technology, leading to declines in AI-linked stocks globally.

• The tech-heavy U.S. Nasdaq slipped 0.5%. However, the FTSE 350 tech sector was up 4.3%.

• Investors will watch employment and inflation reports in the UK ahead of the Bank of England's interest rate decision on Thursday, when it is widely expected to hold rates.

• The U.S. Federal Reserve will announce its decision on Wednesday, with markets pricing in a 90% chance of a 25-basis-point hike, according to CME's FedWatch Tool.

• UK's Prime Minister Andy Burnham is set to meet executives from banks, oil majors, and a telecom firm, to discuss his economic growth plans.

• Among mid-cap stocks, GlobalData slid nearly 19% to the bottom of the FTSE 250 after the data analytics and consulting company's annual revenue growth forecast disappointed investors.

(Reporting by Anand Gopal and Purvi Agarwal in Bengaluru; Editing by Leroy Leo and Jonathan Ananda)