Sharecast - At 0920 GMT, the FTSE 100 was down 0.1% at 7,393.06.
Figures released earlier by the National Bureau of Statistics showed that China fell back into deflationary territory in October.
The consumer price index declined by 0.2% versus the same month last year, and compared to expectations for a 0.1% drop. The data showed that pork prices tumbled 30.1%.
Meanwhile, the producer price index fell 2.6% on the year in October following a 2.5% drop in September.
Core inflation - which excludes volatile elements such as food and fuel - fell to 0.6% from 0.8%.
Robert Carnell, regional head of research, Asia-Pacific, at ING, argued that China is not dealing with deflation, but rather low underlying inflation".
He said: "Let's be very clear about what deflation is and what it isn't. It is a very pernicious situation, where the ‘general price level’ which includes consumer prices, but also other prices such as real and financial assets and money wages decline. And it leads to a sharp slowdown in economic activity as it deters consumer spending and investment,” he said.
"What China has right now, is a low rate of underlying inflation, which reflects the fact that domestic demand is fairly weak. What today's data show is that it doesn't take much of a negative shock from one of the components to push a low underlying headline inflation rate below zero on a year-on-year basis.
"If you want to use any term ‘disinflation’ would be my preference, but what we are seeing today is mainly the result of a supply excess, rather than a collapse in demand."
On home shores, the latest survey from the Royal Institution of Chartered Surveyors showed the decline in house prices was steadying.
The net balance of surveyors reporting that house prices have risen over the last three months ticked up to -63 in October, from -69 in September, coming in above consensus expectations of -65.
In equity markets, there was more corporate news than you can shake a stick at.
Auto Trader rallied as it posted a 10% jump in first-half operating profit and a 12% increase in revenue.
AstraZeneca (NASDAQ:AZN) advanced as it lifted its full-year guidance for core earnings per share and total revenue excluding Covid medicines.
Taylor Wimpey (LON:TW) rose as the housebuilder highlighted an uncertain market backdrop but said it now expects full-year operating profit to be at the top end of its guidance range thanks to a "focus on optimising price and sharp cost discipline".
National Grid (LON:NG) and Lancashire Holdings also racked up healthy gains after results and a trading statement, respectively.
On the downside, Flutter Entertainment (LON:FLTRF) tumbled as it said full-year group adjusted EBITDA excluding the US was set to come in at the bottom end of the range of £1.44bn to £1.6bn.
Discount retailer B&M (LON:BMEB) was under the cosh even as it raised guidance for profits and store openings after a strong first half, with double-digit growth in both revenues and earnings.
HSBC (LON:HSBA) and Sainsbury’s (LON:SBRY) were both weaker as they traded without entitlement to the dividend.
Wizz Air (LON:WIZZ) flew lower after the low-cost airline said full-year profits would be at the bottom end of guidance due to a "difficult" environment.
Domino’s, Indivior and Wood Group also lost ground after trading updates and results.
Market Movers
FTSE 100 (UKX) 7,393.06 -0.12%
FTSE 250 (MCX) 17,815.33 -0.17%
techMARK (TASX) 4,072.21 -0.36%
FTSE 100 - Risers
Auto Trader Group (AUTO) 681.60p 7.27%
AstraZeneca (AZN) 10,500.00p 3.24%
Rightmove (RMV) 479.80p 2.22%
Taylor Wimpey (TW.) 117.20p 1.43%
Unilever (LON:ULVR) 3,941.50p 0.96%
Smith & Nephew (SN.) 1,000.00p 0.93%
Marks & Spencer Group (MKS (LON:MKS)) 246.10p 0.82%
Relx plc (REL) 2,935.00p 0.76%
Coca-Cola (NYSE:KO) HBC AG (CDI) (CCH) 2,133.00p 0.71%
Mondi (LON:MNDI) 1,360.50p 0.70%
FTSE 100 - Fallers
Flutter Entertainment (CDI) (FLTR) 12,125.00p -11.50%
B&M European Value Retail S.A. (DI) (BME) 515.80p -4.09%
Airtel Africa (AAF) 111.00p -3.48%
IMI (LON:IMI) 1,468.00p -3.10%
Entain (LON:ENT) 930.00p -2.92%
HSBC Holdings (LON:HSBA) 594.20p -2.16%
Endeavour Mining (EDV (LON:EDV)) 1,652.00p -1.96%
Fresnillo (LON:FRES) 531.20p -1.96%
Ocado Group (LON:OCDO) 529.60p -1.78%
Anglo American (JO:AGLJ) (AAL) 2,063.00p -1.55%
FTSE 250 - Risers
Lancashire Holdings Limited (LRE) 665.00p 9.65%
Spirent Communications (LON:SPT) 104.20p 5.47%
Vesuvius (VSVS) 416.00p 2.77%
Allianz (ETR:ALVG) Technology Trust (ATT) 272.00p 2.06%
888 Holdings (DI) (LON:888) 83.25p 1.90%
Premier Foods (PFD) 126.40p 1.61%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 271.00p 1.31%
TP Icap Group (TCAP) 173.40p 1.23%
Drax Group (LON:DRX) 429.20p 1.20%
Serco Group (LON:SRP) 149.30p 1.08%
FTSE 250 - Fallers
Wizz Air Holdings (WIZZ) 1,722.00p -7.57%
Domino's Pizza Group (LON:DOM) 357.20p -3.88%
Wood Group (John) (WG.) 147.50p -3.41%
Indivior (INDV) 1,494.00p -2.92%
Darktrace (LON:DARK) 350.10p -2.18%
Target (NYSE:TGT) Healthcare Reit Ltd (THRL (LON:THRL)) 77.40p -2.15%
Urban Logistics Reit (SHED) 113.40p -2.07%
Softcat (LON:SCTS) (SCT) 1,297.00p -2.04%
Discoverie Group (DSCV) 627.00p -1.88%
Liontrust Asset Management (LON:LIO) 540.50p -1.82%
