Sharecast - The FTSE 100 was down 0.2% at 7,453.59, having been slightly firmer earlier.
Investors were mulling a closely-watched survey which showed that UK private sector output stabilised in November, driven by growth in services.
The flash S&P Global/CIPS UK PMI composite output index nudged into growth, at 50.1, from October’s 48.7. It was the first time it rose above the neutral 50.0 level since July, and was ahead of forecasts for no change.
A reading above 50 indicates growth, while one below suggests contraction.
Within that, the UK services PMI Business Activity Index rose to 50.5 from 49.5, a four-month high and also ahead of consensus for no change.
Manufacturing remained in contraction, but posted an improved performance. The UK manufacturing output index rose to 47.9 from 44.3 a month previously, while the PMI increased from 44.8 to 46.7 - a six-month high.
However, total new order intakes decreased for the fifth month running, which S&P Global said suggested that "subdued"” underlying demand conditions were persisting.
The survey also pointed to "sticky" inflation, with both input costs and average prices charged increasing at faster rates than in October.
Tim Moore, economics director at S&P Global Market Intelligence, said: "The UK economy found its feet in November, as the service sector arrested a three-month sequence of decline and manufacturers began to report less severe cutbacks to production schedules.
"Relief at the pause in interest rate hikes and a clear slowdown in headline measures of inflation are helping to support business activity."
John Glen, chief economist at the Chartered Institute of Procurement & Supply, said: "Challenges persist for UK manufacturing, with subdued demand leading to decreasing production.
"The UK is not alone is continuing to face a challenging economic environment, and the fall in export sales for both manufacturing and services shows that UK businesses cannot rely on international sources to help replace diminished domestic demand.
"The sticky nature of inflation will be a cause of concern for businesses."
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The recovery in the composite PMI to above 50 provides reassurance that the economy is not on the brink of a recession.
"We expect quarter-on-quarter in GDP in the fourth quarter to be boosted by a recovery in output in the public sector – which is not covered by the PMI – due to a decline in the disruption caused by strikes. For now then we are standing by our above-consensus forecast for fourth-quarter GDP."
In equity markets, Vodafone (LON:VOD), British Land (LON:BLND), Land Securities (LON:LAND), Liontrust (LON:LIO) Asset Management, National Grid (LON:NG) and Great Portland Estates were all weaker as they traded without entitlement to the dividend.
Transport operator FirstGroup (LON:FGP) was under the cosh after saying it swung to a loss in the first half as it took a one-off hit from its pension plans.
Virgin Money (LON:VMUK) fell as it reported a drop in full-year profits after it set aside £309m for credit card impairment charges.
On the upside, product inspection, testing and certification company Intertek gained as it said it's on track to deliver on targets for 2023 after a solid third quarter, though currency movements were limiting growth more than expected.
BP (LON:BP) and Shell (LON:RDSa) were among the top performers on the FTSE 100 as oil prices bounced back.
Market Movers
FTSE 100 (UKX) 7,453.59 -0.21%
FTSE 250 (MCX) 18,366.79 -0.61%
techMARK (TASX) 4,105.00 -0.41%
FTSE 100 - Risers
Intertek Group (LON:ITRK) 3,953.00p 3.24%
BP (BP.) 473.10p 1.49%
Sainsbury (J) (SBRY) 269.10p 0.75%
Ashtead Group (LON:AHT) 4,750.00p 0.53%
Pershing Square (NYSE:SQ) Holdings Ltd NPV (PSH) 3,150.00p 0.51%
Shell (SHEL) 2,569.50p 0.51%
BAE Systems (LON:BAES) (BA.) 1,066.00p 0.47%
Anglo American (JO:AGLJ) (AAL) 2,248.50p 0.47%
Melrose Industries (LON:MRON) (MRO) 518.40p 0.47%
Rio Tinto (LON:RIO) 5,534.00p 0.45%
FTSE 100 - Fallers
Vodafone Group (LON:VOD) 70.58p -5.79%
National Grid (NG.) 995.40p -3.69%
Whitbread (LON:WTB) 3,232.00p -3.35%
Imperial Brands (LON:IMB) 1,820.00p -3.11%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 154.10p -2.96%
Land Securities Group (LAND (LON:LAND)) 629.20p -2.45%
JD Sports Fashion (JD.) 146.75p -2.39%
Ocado Group (LON:OCDO) 557.40p -1.80%
Auto Trader Group (AUTO) 699.20p -1.77%
SEGRO (SGRO) 808.20p -1.51%
FTSE 250 - Risers
Bakkavor Group (BAKK) 89.80p 5.65%
Ithaca Energy (LON:ITH) 159.50p 4.11%
Morgan Sindall Group (MGNS) 2,115.00p 3.93%
CAB Payments Holdings (CABP) 64.40p 3.87%
North Atlantic Smaller Companies Inv Trust (NAS) 3,970.00p 2.58%
Diversified Energy Company (DEC) 71.65p 1.78%
International Distributions Services (IDS) 250.30p 1.62%
PZ Cussons (LON:PZC) 140.20p 1.59%
Bank of Georgia Group (LON:BGEO) 3,455.00p 1.32%
TBC Bank Group (TBCG) 2,780.00p 1.28%
FTSE 250 - Fallers
British Land Company (BLND) 344.50p -4.89%
FirstGroup (FGP) 167.30p -4.40%
Virgin Money UK (VMUK) 151.00p -3.82%
Urban Logistics Reit (SHED) 117.80p -3.76%
Carnival (NYSE:CCL) 1,000.00p -3.75%
Liontrust Asset Management (LIO) 568.00p -3.73%
HICL Infrastructure (HICL) 132.20p -3.64%
Great Portland Estates (GPE) 390.60p -3.56%
3i (LON:III) Infrastructure (3IN) 324.00p -3.28%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 485.00p -3.19%