Sharecast - At 0830 BST, the FTSE 100 was up 0.3% at 7,653.80.
Susannah Streeter, head of money and markets at Hargreaves Lansdown (LON:HRGV), said: "The FTSE 100 has opened on the front foot as investors assess progress in the easing of inflationary pay demands in the UK, amid some hopes that a US diplomatic dash could stop conflict escalating in the Middle East.
"Wages are retreating from giddy heights, but it’s a slow march down and the Bank of England will continue to keep a wary eye on progress."
Data released earlier by the Office for National Statistics showed that growth in basic wages eased a little in August.
Average earnings excluding bonuses rose 7.8% in the three months to August versus a year earlier, down from upwardly-revised 7.9% growth the month before. Economists were expecting growth to be unchanged at 7.8%.
Growth in the three months to July was the highest since record began in 2001.
Total earnings including bonuses eased to 8.1% growth from 8.5%, versus consensus expectations of 8.3%.
Investors were also eyeing more earnings releases across the pond.
Richard Hunter, head of markets at Interactive Investor, said: "Around a tenth of the S&P500 are due to report earnings this week, and of the few which have so far stood up to the plate, the vast majority have beaten expectations on both earnings and revenues. Indeed, since the season began in earnest on Friday, estimates for earnings on the whole have been lifted to a likely annual increase of 2.2% from a previous 1.3%."
In equity markets, Melrose was among the top performers on the FTSE 100 after it lifted its adjusted operating margin outlook for 2023.
Engine maker Rolls-Royce (LON:RR) also rallied after saying it will cut up to 2,500 jobs worldwide as part of a plan to streamline the organisation. The company, which currently employs 42,000 worldwide, said the engineering technology & safety segments will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools.
Price comparison website Moneysupermarket (LON:MONY).com advanced after saying it saw growth accelerate in the third quarter due to high levels of switching in car and home insurance, offsetting the impact of higher interest rates on loan and funding activities.
On the downside, St James’ Place slid after confirming it was overhauling its fee structure. Hargreaves Lansdown also fell.
Housebuilders were under the cosh after Bellway (LON:BWY) reported an 18.1% fall in underlying full-year pre-tax profit amid a "challenging" market, with demand dented by rising mortgage rates. It also said it now expects far fewer completions in 2024, at around 7,500 homes, down from 10,945.
Jupiter Fund Management tumbled as it posted a decline in third-quarter assets under management as macroeconomic uncertainty continued to weigh on investor demand for risk assets, particularly with retail clients.
Market Movers
FTSE 100 (UKX) 7,653.80 0.30%
FTSE 250 (MCX) 17,549.50 0.17%
techMARK (TASX) 4,172.48 0.33%
FTSE 100 - Risers
Ocado Group (LON:OCDO) 514.20p 2.84%
Melrose Industries (LON:MRON) (MRO) 488.30p 2.05%
Rolls-Royce Holdings (RR.) 217.30p 1.78%
AstraZeneca (NASDAQ:AZN) 11,110.00p 1.26%
Lloyds Banking Group (LON:LLOY) 43.97p 1.07%
Diploma (LON:DPLM) 2,940.00p 1.03%
Beazley (BEZ) 528.50p 0.96%
B&M European Value Retail S.A. (DI) (BME) 578.60p 0.94%
IMI (LON:IMI) 1,549.00p 0.91%
Vodafone Group (LON:VOD) 78.13p 0.86%
FTSE 100 - Fallers
Taylor Wimpey (LON:TW.) 107.75p -1.51%
Barratt Developments (LON:BDEV) 409.20p -1.42%
Berkeley Group Holdings (The) (BKG) 4,020.00p -1.01%
Hargreaves Lansdown (HL.) 755.60p -0.81%
3i Group (LON:III) 2,059.00p -0.68%
Rio Tinto (LON:RIO) 5,184.00p -0.63%
Glencore (LON:GLEN) 460.05p -0.58%
BT Group (LON:BT.A) 119.30p -0.54%
Experian (EXPN) 2,739.00p -0.44%
Frasers Group (FRAS) 802.00p -0.37%
FTSE 250 - Risers
Digital 9 Infrastructure NPV (DGI9) 38.55p 12.88%
Chemring Group (CHG (LON:CHG)) 281.00p 4.85%
Moneysupermarket.com Group (MONY) 255.20p 4.16%
Octopus Renewables Infrastructure Trust (ORIT) 86.30p 4.10%
FirstGroup (LON:FGP) 155.00p 3.75%
Pennon Group (LON:PNN) 699.50p 2.57%
Helios Towers (HTWS) 69.60p 2.43%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 440.60p 2.27%
TR Property Inv Trust (TRY) 275.50p 2.04%
JPMorgan (NYSE:JPM) Japanese Inv Trust (JFJ) 463.50p 1.87%
FTSE 250 - Fallers
Jupiter Fund Management (JUP) 78.75p -9.79%
PureTech Health (PRTC) 161.40p -4.38%
Bellway (BWY) 2,092.00p -3.24%
Bellevue Healthcare Trust (Red) (BBH) 127.80p -1.84%
Empiric Student Property (ESP) 86.10p -1.60%
Persimmon (LON:PSN) 1,018.00p -1.36%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 265.00p -1.30%
Hammerson (HMSO) 24.54p -1.29%
Edinburgh Inv Trust (EDIN) 655.00p -1.06%
Spirent Communications (LON:SPT) 94.75p -0.99%