Market overview: Sharp drops in StanChart, homebuilders

1630:Close Stocks edged higher ahead of what was likely to be an eventful second half of the week. The Monetary Policy Committee was set to decide on interest rates on Thursday, followed by the latest US employment report on the next day. Shares in Meggitt paced gains on the back of positive broker commentary. The opposite was true for homebuilders, which were struck down by a gloomy analysis out of Liberum. StanChart dropped sharply after saying it would go cap in hand to shareholders again. Tullow Oil jumped, with supportive remarks from Citi possibly playing a hand. Three-month copper futures edged lower by 0.1% to reach $5,105 per metric tonne on the LME. FTSE 100 up 21.81 points to 6,383.61.

1432: GM reports 16% rise in US auto sales in October, ahead of the 12% expected by analysts.

1400: Housebuilders are under pressure after broker Liberum downgraded its recommendation on Barratt Developments, Persimmon and Taylor Wimpey to 'sell' from 'hold'.

1207: US telecomunications giant Sprint releases second quarter EBITDA of $2.01bn (consensus: $1.95bn).

0949: Royal Mail has reportedly won an extension of its delivery contract with Asos.

0930: Markit´s UK construction PMI edged lower to a reading of 58.8 for October from the prior month´s reading of 59.9 (consensus: 58.8).

0915: While the uncertain macro environment will impact all E&P companies, Citigroup says it maintains its preference for those they believe hold low-cost resource positions at discounted valuations, such as Tullow and Genel. In a separate report the broker has removed Senior from its Key Buy List due to ongoing industrial concerns.

0833: BG Group is in the lead early on, followed close behind by gains in Royal Dutch Shell after the company announced another $1bn in expected synergies from its purchase of BG. StanChart on the other hand was moving lower after announcing a rights issue and job cuts after a "disappointing" set of third quarter figures. The economic release calendar is rather light, with the latest UK construction PMI set for release alongside euro area data on services sector activity. Overnight, the Dow Jones Industrial Average moved back into the green for the year while Shanghai´s benchmark Composite Index edged lower by 0.25% to 3,316.7. FTSE 100 down 4.10 points to 6,537.01.