April 27 (Reuters) - London's FTSE 100 declined on

Monday, dragged by losses in the energy and consumer sectors, as

stalled Iran-U.S. peace talks dampened investor sentiment ahead

of crucial central bank meetings this week.

The blue-chip FTSE 100 index finished 0.6% lowerat

10,321.09 points, its sixth consecutive session of losses- its

longest losing streak in more than a year. Meanwhile, the midcap

FTSE 250 closed flat.

* Prospects for peace in the Middle East dimmed over the

weekend. U.S. President Donald Trump called off a trip by his

envoys to Pakistan and later said Iran should phone when it

wanted a deal.

* Energy sector losses weighed the most

on the blue-chip index. Shell dipped 1.7% after the oil

and gas major agreed to buy Canadian energy company ARC

Resources ( AETUF ) in a $16.4 billion deal.

* Consumer-related stocks also faced

pressure, with supermarket chain Sainsbury falling 3.3%

after Goldman Sachs' ( GS ) double downgrade on its stock.

* Marks and Spencer ( MAKSF ) dropped 4.7%. JPMorgan

reported Worldpanel data showing UK clothing market slowdown,

with M&S sales dropping 0.5% year-on-year versus 3.2% growth in

the previous period.

* Precious metal miners dropped 2.8% as

gold prices edged lower.

* Global oil benchmark Brent crude futures hit two-

week high at $107.49 a barrel. This fed inflation fears and

extinguished expectations for interest-rate reductions across

economies this year.

* All eyes are now on the Bank of England, widely expected

to keep interest rates steady this week, while attempting to

assess mounting economic challenges stemming from the war in

Iran.

* Market participants will also monitor forthcoming policy

decisions from the U.S. Federal Reserve and European Central

Bank for further direction.

* On Monday, UK's aerospace and defense stocks

edged 0.2% higher.

* A survey from the Confederation of British Industry

showed the country's retailers reported the broadest

year-on-year decline in sales in more than 40 years as the Iran

war raised households' inflation fears.