Sharecast - At 0825 GMT, the FTSE 100 was flat at 7,554.96.
Investors were mulling the latest data out of China, which showed that activity in the services sector shrank further in November, hitting a six-month low amid Covid restrictions.
The Caixin services purchasing managers’ index fell to 46.7 from 48.4 in October, coming in below consensus expectations of 48.0 and marking the third contraction in a row.
Wang Zhe, senior economist at Caixin Insight Group, said: "Since October, the impact of Covid outbreaks has taken a heavy toll on the economy, and the challenge of how to balance Covid controls and economic growth has once again become a core issue.
"The market is in urgent need of policies to promote employment and stabilise domestic demand. Beijing should further coordinate fiscal and monetary policies to expand domestic demand and boost incomes of the poorer parts of the population."
On home shores, meanwhile, the CBI said in its latest economic forecast that the UK economy is likely to have fallen into recession in the third quarter of 2022, when GDP shrank by 0.2%.
The CBI also said it now expects UK GDP to shrink by 0.4% in 2023, down from a previous forecast of 1% growth.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown (LON:HRGV), said: "Predictions of chronic stagflation for the UK, even once the economy edges out of recession, is a background downbeat tune indices in London will be moving to.
"There is set to be a lacklustre start for the FTSE 100 as investors digest uncertainty on Wall Street and the more positive trading sessions in Asia. Predictions from the Confederation of British Industry will also weigh on minds.
"Although their forecast for a 0.4% contraction in output next year is more optimistic than the Bank of England’s bleak prediction, it is the outlook for the decade ahead which makes for difficult reading. The CBI warns that companies will face significant challenges through a long period of elevated inflation and stagnant growth, unless fresh investment can be unlocked.
"Finding the key to do that is proving a big challenge, with the UK government hesitant about bringing in further tax incentives, while some companies appear to be battening down the hatches amid global uncertainty."
Looking ahead to the rest of the day, the S&P Global/CIPS services purchasing managers’ index for the UK for November is due at 0930 GMT.
In equity markets, Asia-focused Prudential (LON:PRU) was the top gainer on the FTSE 100, likely boosted by the further easing of some Covid restrictions in China.
Miners - which are heavily dependent on demand from China - were also on the front foot - with Rio Tinto (LON:RIO), Glencore (LON:GLEN), Anglo American (LON:AAL) and Antofagasta (LON:ANTO) all up.
Vodafone rallied as it said that chief executive Nick Read would step down at the end of the year. Chief financial officer Margherita Della Valle has been appointed interim CEO and "will accelerate the execution of the company's strategy to improve operational performance and deliver shareholder value", the company said.
Streeter said: "Investors will be hoping that a change at the top at Vodafone might inject a new longer-term lease of life in the company’s share price."
On the downside, housebuilder Persimmon (LON:PSN) was hit by a downgrade to ‘hold’ from ‘buy’ at Jefferies.
Market Movers
FTSE 100 (UKX) 7,554.96 -0.02%
FTSE 250 (MCX) 19,359.76 -0.02%
techMARK (TASX) 4,414.33 -0.13%
FTSE 100 - Risers
Prudential (PRU) 1,055.00p 2.38%
Rio Tinto (RIO) 5,695.00p 1.99%
Vodafone Group (LON:VOD) 92.66p 1.67%
Glencore (GLEN) 566.30p 1.43%
Anglo American (AAL) 3,331.00p 1.06%
Fresnillo (LON:FRES) 904.40p 0.98%
Pershing Square (NYSE:SQ) Holdings Ltd NPV (PSH) 2,960.00p 0.68%
Antofagasta (ANTO) 1,444.00p 0.66%
Scottish Mortgage Inv Trust (SMT) 792.00p 0.53%
Intertek Group (LON:ITRK) 4,149.00p 0.46%
FTSE 100 - Fallers
Persimmon (PSN) 1,258.50p -2.86%
Sainsbury (J) (SBRY) 221.20p -1.21%
Kingfisher (LON:KGF) 247.20p -0.88%
Hargreaves Lansdown (HL.) 864.60p -0.83%
GSK (GSK) 1,412.40p -0.81%
3i Group (LON:III) 1,308.50p -0.72%
Rolls-Royce Holdings (LON:RR.) 89.60p -0.72%
Barratt Developments (LON:BDEV) 406.50p -0.71%
HSBC Holdings (LON:HSBA) 495.10p -0.68%
CRH (CDI) (LON:CRH) 3,264.50p -0.62%
FTSE 250 - Risers
Fidelity China Special Situations (LON:FCSS) 232.00p 3.11%
Diploma (LON:DPLM) 2,992.00p 2.12%
Shaftesbury (SHB) 365.40p 2.07%
Crest Nicholson Holdings (LON:CRST) 234.20p 1.91%
BlackRock (NYSE:BLK) World Mining Trust (BRWM) 699.00p 1.75%
CMC Markets (CMCX) 236.00p 1.51%
Oxford Instruments (LON:OXIG) 2,230.00p 1.36%
Carnival (NYSE:CCL) 705.40p 1.26%
Dr. Martens (DOCS) 210.80p 1.15%
Worldwide Healthcare Trust (WWH) 3,340.00p 1.06%
FTSE 250 - Fallers
Molten Ventures (GROW) 388.80p -4.57%
International Distributions Services (IDS) 223.90p -4.52%
Savills (LON:SVS) 909.00p -3.19%
NCC Group (NCC) 205.00p -2.84%
RHI Magnesita N.V. (DI) (RHIM) 2,206.00p -1.25%
Genus (LON:GNS) 2,988.00p -1.06%
Vistry Group (LON:VTYV) (VTY) 613.50p -1.05%
OSB Group (OSB) 472.60p -1.05%
Plus500 (LON:PLUSP) Ltd (DI) (PLUS) 1,915.00p -1.03%
Spirent Communications (LON:SPT) 272.00p -0.95%