London open: UK stocks slip ahead of economic data, Autumn Statement

It was a tentative start for the UK stock market on Wednesday as a lack of corporate news and a string of economic data kept traders on the fence.

Investors were also awaiting the Autumn Statement announcement due out at 12:30 to see what Chancellor George Osborne has in store.Nevertheless, many analysts are predicting it will be seen as a political rather than an economic event, with expectations low for any surprise announcement on funding.

The FTSE 100 was trading 0.1% lower at 6,733 in early deals.

Stocks had finished strongly on Tuesday, bouncing back after a heavy fall the previous session, with shares in the resource sectors rebounding on hopes of stimulus in Europe and China. Speculation about a possible merger between oil majors BP and Shell also boosted the two heavyweight stocks in London, pushing the FTSE 100 to 6,742.10, its highest close since 21 November.

Two separate surveys from China overnight showed that growth in the services sector picked up in November, with both the non-official HSBC non-manufacturing purchasing managers' index (PMI) and the government's non-manufacturing PMI rising to 53 and 53.9, respectively. However, ongoing weakness in the manufacturing sector meant that the HSBC China composite PMI fell from 51.7 to 51.1.

Non-manufacturing PMIs are also due out in the UK, Eurozone and US later on Wednesday. The ADP employment report will also be in focus Stateside as it comes ahead of the all-important non-farm payrolls data on Friday.

Speeches from various members of the Federal Reserve and the central bank's Beige Book were also scheduled for Wednesday evening.

Sage jumps, oil stocks pull back

Accountancy software group Sage was a high riser after it hailed higher annual profits and the achievement of key financial milestones for 2014. The company also said it was on track to hit financial targets for 2015.

Stocks in the oil sector were pulling back after a solid rise the previous session, with Tullow and BG Group both recording losses.

Shares in BP and Shell also retreated after advancing on Tuesday on the back of reports that Shell could launch a takeover bid for its smaller rival. "Such a merger would be a brave move at a time of heightened uncertainty," said analyst Chris Beauchamp from IG, with oil prices currently near their lowest in over four years.

Just Eat, the online takeaway delivery service, dropped sharply after a group of shareholders behind its initial public offering earlier in the year raised £139m by selling a 7.7% stake. The 43.5m shares were sold at a price of 320p, compared with Tuesday's close of 343.05p.

Postal group Royal Mail was also trading in the red after both Credit Suisse and Jefferies reiterated their 'underperform' ratings on the stock.

Market Movers
techMARK 2,943.82 +0.17%
FTSE 100 6,732.68 -0.14%
FTSE 250 15,823.10 -0.06%

FTSE 100 - Risers
Sage Group (SGE) 419.20p +3.97%
Morrison (Wm) Supermarkets (MRW) 185.80p +1.59%
Sainsbury (J) (SBRY) 244.70p +1.45%
InterContinental Hotels Group (IHG) 2,621.00p +1.20%
3i Group (III) 447.00p +1.13%
Friends Life Group Limited (FLG) 378.90p +1.01%
Johnson Matthey (JMAT) 3,358.00p +0.96%
Bunzl (BNZL) 1,795.00p +0.90%
Aberdeen Asset Management (ADN) 464.50p +0.89%
Wolseley (WOS) 3,697.00p +0.85%

FTSE 100 - Fallers
Royal Mail (RMG) 393.50p -2.96%
Antofagasta (ANTO) 729.50p -1.55%
Royal Dutch Shell 'B' (RDSB) 2,267.50p -1.07%
Royal Dutch Shell 'A' (RDSA) 2,186.00p -1.00%
Intu Properties (INTU) 353.80p -0.95%
Capita (CPI) 1,058.00p -0.94%
Coca-Cola HBC AG (CDI) (CCH) 1,414.00p -0.91%
Vodafone Group (VOD) 227.95p -0.87%
Aggreko (AGK) 1,566.00p -0.82%
Randgold Resources Ltd. (RRS) 4,232.00p -0.82%

FTSE 250 - Risers
EnQuest (ENQ) 44.74p +3.47%
Zoopla Property Group (WI) (ZPLA) 200.90p +3.34%
NMC Health (NMC) 488.00p +2.85%
Britvic (BVIC) 685.50p +2.39%
Bank of Georgia Holdings (BGEO) 2,186.00p +2.05%
Ladbrokes (LAD) 115.70p +1.94%
Stock Spirits Group (STCK) 249.60p +1.84%
Worldwide Healthcare Trust (WWH) 1,795.00p +1.76%
Fisher (James) & Sons (FSJ) 1,056.00p +1.54%
Synthomer (SYNT) 227.70p +1.52%

FTSE 250 - Fallers
Just Eat (JE.) 308.60p -9.02%
Hunting (HTG) 571.00p -3.55%
Infinis Energy (INFI) 223.00p -2.19%
TSB Banking Group (TSB) 264.60p -2.04%
Home Retail Group (HOME) 193.70p -2.02%
Ted Baker (TED) 2,140.00p -1.88%
Premier Oil (PMO) 195.70p -1.86%
PayPoint (PAY) 925.00p -1.80%
Michael Page International (MPI) 400.60p -1.74%
Saga (SAGA) 153.00p -1.67%