FTSE 100 edges higher as energy, banking stocks power gains

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April 27 (Reuters) - London's FTSE 100 edged higher on Monday as gains in energy and financial sectors offset losses in consumer staples and mining stocks, with investors turning their attention to pivotal central bank meetings due later this week.

The blue-chip FTSE 100 index rose 0.2% to 10,393.85 points by 1005 GMT, while the midcap FTSE 250 also climbed 0.2%.

* Energy stocks led the sectoral gains, surging 1% as oil majors BP and Shell both advanced about 1%.

* Prospects for peace in the Middle East dimmed over the weekend, with U.S. President Donald Trump stating that Iran would need to initiate contact if it sought to negotiate an end to their escalating two-month conflict.

* The banking sector also gained alongside aerospace and defense stocks, climbing 0.5% and 0.9% respectively.

* Global oil benchmark Brent crude futures climbed 2.4% to $107.84, reigniting inflation concerns and prompting traders to eliminate expectations for interest rate reductions across economies this year.

* All eyes are now on the Bank of England, which is widely expected to maintain current interest rates later this week, while attempting to assess the mounting economic challenges facing Britain amid the ongoing Iran conflict.

* Market participants will also closely monitor forthcoming policy decisions from the U.S. Federal Reserve and European Central Bank for further direction.

* On Monday, UK's consumer staples faced pressure, with supermarket chain Sainsbury falling 3% after Goldman Sachs' double downgrade on the stock.

* Precious metal miners retreated 0.3% as gold prices edged lower

* Among other movers, Premier Inn owner Whitbread (WTBCF) advanced 1.7% after The Times reported the company's plans to divest numerous hotel properties and return 1.5 billion pounds ($2.03 billion) to shareholders.

* Meanwhile, space technology investor Seraphim Space Investment Trust (SSITF) plummeted 11.6% following its announcement to raise up to 350 million pounds ($473.83 million) through a placement of new 'C' shares at 100 pence each. ($1 = 0.7387 pounds) (Reporting by Ragini Mathur in Bengaluru; Editing by Shailesh Kuber)