Sharecast - At 0830 GMT, the FTSE 100 was down 0.3% at 7,504.50.
Derren Nathan, head of market research at Hargreaves Lansdown (LON:HRGV), said: "As we enter the final furlong for 2023, US markets are back to 12-month highs. But the optimism provided by Federal Reserve Bank Chairman Jerome Powell’s comments on Friday, that monetary policy is starting achieve its goals, hasn’t spread to Asian markets in overnight trading.
"So, it’s still too early to call if this was the starting gun for a Santa Rally. Despite strengthening hopes that rates have peaked, a recent string of poor output indicators for China are weighing on the region.
"The notion that monetary policy’s grip isn’t going to get any tighter has helped push bullion prices to record highs. An ounce of the shiny stuff will now set you back close to $2,100 and speculation is building that there could be more to come."
On the macroeconomic front, investors were eyeing the US JOLTS job openings on Tuesday, the November ADP report on Wednesday and the all-important non-farm payrolls on Friday.
In equity markets, miners and energy stocks were the worst performers as oil and metals prices fell, with BP (LON:BP), Shell (LON:RDSa), Rio, Glencore (LON:GLEN), Anglo American (JO:AGLJ) and Antofagasta (LON:ANTO) all down.
Petrofac (LON:PFC) tanked after saying it was looking to sell some assets as it warned on cash flow.
On the upside, William Hill owner 888 Holdings (LON:888) surged following a report that it rejected a £700m takeover approach by Playtech (LON:PTEC). According to The Sunday Times, Playtech made a written indicative approach to acquire 888 at 156p a share in July, only for it to be rejected as undervaluing the company.
Engine maker Rolls-Royce (LON:RR) also gained after JPMorgan (NYSE:JPM) upgraded the shares to ‘overweight’ from ‘neutral’.
Capita rallied after saying it was selling its 75% stake in Fera Science Limited, the joint venture set up eight years ago with the government that specialise in environmental testing, research, and advisory and assurance services. The business process services group will receive cash proceeds of £62m from Bridgepoint Group, which will be used to strengthen the balance sheet and support investment.
Boohoo (LON:BOOH) was in the black after Mike Ashley’s Frasers Group upped its stake in the fast fashion retailer again.
Market Movers
FTSE 100 (UKX) 7,504.50 -0.33%
FTSE 250 (MCX) 18,475.34 0.36%
techMARK (TASX) 4,083.87 -0.09%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 286.70p 3.61%
Ocado Group (LON:OCDO) 609.20p 2.52%
Smith (DS) (SMDS) 303.80p 2.46%
JD Sports Fashion (JD.) 162.95p 1.62%
St James's Place (STJ) 668.60p 1.58%
Land Securities Group (LAND (LON:LAND)) 642.20p 1.36%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 158.60p 1.34%
NATWEST GROUP (NWG) 214.00p 1.33%
SEGRO (SGRO) 833.00p 1.17%
Melrose Industries (LON:MRON) (MRO) 539.20p 1.01%
FTSE 100 - Fallers
Flutter Entertainment (CDI) (FLTR) 12,115.00p -3.81%
Rio Tinto (LON:RIO) 5,457.00p -2.54%
United Utilities Group (LON:UU.) 1,067.50p -2.24%
BP (BP.) 468.20p -2.13%
Glencore (GLEN) 449.30p -1.84%
Anglo American (AAL) 2,270.50p -1.75%
Shell (SHEL) 2,525.50p -1.65%
Antofagasta (ANTO) 1,475.50p -1.34%
Smurfit Kappa Group (CDI) (LON:SKG) 3,044.00p -1.17%
Entain (LON:ENT) 799.00p -1.11%
FTSE 250 - Risers
888 Holdings (DI) (888) 80.00p 13.31%
4Imprint Group (FOUR) 4,535.00p 4.61%
Helios Towers (HTWS) 75.80p 3.76%
SThree (STEM) 424.50p 3.54%
Morgan Advanced Materials (LON:MGAMM) (MGAM) 263.00p 2.94%
Bridgepoint Group (Reg S) (BPT) 241.80p 2.72%
LXI Reit (LXI) 99.25p 2.69%
Bytes Technology Group (LON:BYIT) 560.00p 2.66%
QinetiQ Group (QQ.) 304.00p 2.49%
Savills (LON:SVS) 824.50p 2.42%
FTSE 250 - Fallers
Hammerson (HMSO) 27.08p -2.94%
Future (FUTR (LON:FUTR)) 822.50p -2.72%
Playtech (PTEC) 404.80p -2.69%
Genus (LON:GNS) 1,864.00p -2.36%
Barr (A.G.) (BAG) 475.00p -1.86%
Wood Group (John) (WG.) 139.00p -1.84%
Diversified Energy Company (DEC) 64.00p -1.61%
Digital 9 Infrastructure NPV (DGI9) 30.20p -1.47%
TBC Bank Group (TBCG) 2,710.00p -1.45%
SDCL Energy Efficiency Income Trust (SEIT) 61.20p -1.45%