Sharecast - The FTSE 100 was up 0.3% at 7,561.60.
Data released earlier by the Office for National Statistics showed that the economy unexpectedly shrank in October, with all three sectors contracting.
The economy shrank 0.3% following 0.2% growth in September and versus expectations for a flat performance. Over the last quarter, GDP was unchanged.
The data showed that services output fell by 0.2% in October, driven by a decline in information and communication, and was the main contributor to the fall in GDP growth. The sector had grown 0.2% in September.
Meanwhile, production output was down 0.8%, driven by widespread declines in manufacturing, after showing no growth in September.
Activity in the construction sector declined 0.5% in October following 0.4% growth the month before.
Danni Hewson, head of financial analysis at AJ Bell, said: "The FTSE 100 ticked higher as investors await the latest decision from the Federal Reserve on interest rates.
"So far, the market is seeing nothing to disabuse it of the notion that rate cuts are on the way in 2024 as US inflation came in as expected yesterday and UK GDP figures show the economy is weakening faster than anticipated.
"To what extent Fed chair Jerome Powell and his Bank of England counterpart Andrew Bailey seek to dampen these expectations could well determine the trajectory of stocks heading into the end of the year.
"The worse-than-expected 0.3% decline in October GDP may prompt some concern given the lagged impact of interest rate hikes mean the full pain is not yet being felt by individuals or businesses. So far, the UK has managed to avoid recession but many more releases like today’s might put its ability to keep its head above water under question."
The US producer price index for November is due at 1330 GMT, while the Fed’s final policy announcement of 2023 is at 1900 GMT.
In equity markets, Entain (LON:ENT) shot higher as it said that chief executive officer Jette Nygaard-Andersen has resigned from her position with immediate effect. It has appointed Stella David, a non-executive director, as interim CEO until a permanent replacement is selected.
Jette's decision to leave came after the resolution of HMRC's investigation into the company's legacy Turkish-facing business.
Ventilation products group Volution (LON:FAN) also rallied as it said it expects to beat full-year profit forecasts after a strong performance across the board in the first four months of the financial year.
Paragon Banking Group (LON:PAGPA) gained after RBC Capital Markets upgraded the shares to ‘outperform’ from ‘sector perform’ and hiked the price target to 850p from 700p.
On the downside, B&M European Value Retail (LON:BMEB) tumbled after SSA investments sold 27.8m shares in the discount retailer in a placing. The shares were priced at 582.5p each, raising aggregate gross sale proceeds of £162.1m.
Aston Martin (LON:AML) was knocked lower by a downgrade to 'hold' at HSBC (LON:HSBA).
Market Movers
FTSE 100 (UKX) 7,561.60 0.25%
FTSE 250 (MCX) 18,703.80 0.22%
techMARK (TASX) 4,156.51 0.43%
FTSE 100 - Risers
Entain (ENT) 840.60p 4.34%
AstraZeneca (NASDAQ:AZN) 10,400.00p 2.24%
Croda International (CRDA) 4,799.00p 2.02%
Antofagasta (LON:ANTO) 1,565.00p 1.76%
Convatec Group (CTEC (LON:CTEC)) 235.20p 1.55%
Hikma Pharmaceuticals (LON:HIK) 1,770.00p 1.35%
IMI (LON:IMI) 1,651.00p 1.23%
GSK (GSK) 1,467.00p 1.21%
Rentokil Initial (LON:RTO) 417.20p 1.11%
Beazley (BEZ) 547.50p 1.01%
FTSE 100 - Fallers
B&M European Value Retail S.A. (DI) (BME) 562.20p -6.36%
Rightmove (RMV) 569.20p -4.30%
Weir Group (LON:WEIR) 1,842.50p -3.33%
Vodafone Group (LON:VOD) 65.17p -2.89%
Rolls-Royce Holdings (LON:RR.) 299.20p -1.81%
Prudential (LON:PRU) 866.60p -1.66%
Auto Trader Group (AUTO) 735.40p -1.34%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 157.30p -1.19%
BT Group (LON:BT.A) 124.70p -1.19%
Anglo American (JO:AGLJ) (AAL) 1,676.60p -1.14%
FTSE 250 - Risers
Volution Group (FAN) 415.00p 4.22%
Chemring Group (CHG (LON:CHG)) 336.00p 3.07%
Paragon Banking Group (PAG) 586.50p 2.71%
IntegraFin Holding (IHP) 267.40p 2.61%
Johnson Matthey (LON:JMAT) 1,684.00p 2.37%
Bridgepoint Group (Reg S) (BPT) 252.00p 2.02%
Pagegroup (PAGE) 480.20p 1.95%
Tyman (TYMN) 269.50p 1.89%
Helios Towers (HTWS) 70.10p 1.89%
Vesuvius (VSVS) 456.00p 1.83%
FTSE 250 - Fallers
Aston Martin Lagonda Global Holdings (AML) 215.20p -6.03%
Ferrexpo (LON:FXPO) 71.00p -3.92%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 601.50p -3.37%
Energean (ENOG) 953.50p -3.20%
Discoverie Group (DSCV) 719.00p -2.71%
Wizz Air Holdings (LON:WIZZ) 1,932.50p -2.60%
Foresight Group Holdings Limited NPV (FSG) 395.00p -2.47%
Genus (LON:GNS) 1,967.00p -1.65%
Redrow (LON:RDW) 562.50p -1.40%
Pets at Home Group (PETS) 302.40p -1.37%