Company updates were the focus of attention early Wednesday, amid market caution ahead of a US interest rate decision due after the London close.
Shares in drug maker GSK and retailer Next were climbing after positive business updates, while Aston Martin was being sold after warning on vehicle production volumes.
The FTSE 100 index opened up 6.55 points, 0.1%, at 7,192.71. The FTSE 250 was down 6.0 points, at 18,189.90, but the AIM All-Share was up 1.3 points, 0.2%, at 815.84.
The Cboe UK 100 opened up 0.1% at 718.76, the Cboe UK 250 was down 0.2% at 15,602.34, and the Cboe Small Companies was up 0.2% at 12,347.35.
The dollar pulled back ahead of the US Federal Reserve interest rate decision, which will come at 1800 GMT.
Sterling was quoted at $1.1514 early Wednesday, higher than $1.1465 at the London equities close on Tuesday. The euro traded at $0.9896 early Wednesday, higher than $0.9873 late Tuesday. Against the yen, the dollar was quoted at JP¥147.16, down versus JP¥148.07.
The US central bank is widely expected to enact another 75 basis point hike, as it has done for the past three meetings. The focus is now on any signals the central bank may give about the trajectory of its monetary policy in the months to come.
According to CME's FedWatch tool, there is currently thought to be an equal chance of a 50 basis point hike or a 75 basis point hike in December, with both possibilities standing at a 48% likelihood.
'The US jobs market is not tightening, and the US inflation is not easing. So, there is no reason for the Fed to announce the end of the tightening cycle, in a way to trigger a positive euphoria across stock and bond markets, which would, in return, boost both inflation and jobs in the US,' Swissquote Bank's Ipek Ozkardeskaya said.
The Bank of England follows with its own policy decision on Thursday.
'We think that risks to sterling are skewed to the downside heading into this week's Bank of England meeting. The [Monetary Policy Committee] has a recent track record of surprising to the dovish side, and we believe that market participants may well be disappointed once again,' said Matthew Ryan, head of market strategy at Ebury.
'A 75bp rate hike is our base case scenario, though we expect a split vote, with a handful of members in favour of a smaller rate increase.'
In European equities on Wednesday, the CAC 40 in Paris opened up 0.6%, while the DAX 40 in Frankfurt was up 0.2%.
In the FTSE 100, Next added 3.5%.
The clothing and homewares retailer reiterated annual pretax profit guidance of £840 million, which would be a 2.1% rise from a year before. In the third quarter to October 29, Next said total full-price sales edged down 0.1% year-on-year, but rose 0.4% when interest income is included. This was slightly ahead of its expectations.
For the rest of the year, Next expects full-price sales to shrink by 2% annually.
GSK edged up 1.1%.
The pharmaceutical maker reported revenue of £7.83 billion in the third quarter, rising 18% from £6.63 billion a year before. Pretax profit dropped 15% to £1.01 billion from £1.19 billion.
GSK noted strong growth in Specialty Medicines, and record sales for its shingles vaccine Shingrix.
'We are again raising our full-year guidance and expect good momentum in 2023, further strengthening our confidence in our performance outlooks, driven by Shingrix global expansion and expected new launches including our new RSV vaccine,' it said.
GSK now expects to deliver sales growth of between 8% and 10% at constant exchange rates in 2022, and growth in adjusted operating profit of between 15% and 17% at constant exchange rates. The guidance excludes any contribution from Covid-19 solutions.
GSK declared a dividend of 13.75p for the period. It said there is no change to its expected full-year dividend of 61.25p per share.
Separately GSK also said its respiratory syncytial virus older adult vaccine candidate has been granted priority review by the US Food & Drug Administration.
At the other end of the index, Smurfit Kappa shed 2.2% in early trade. The packaging maker said pretax profit rose by 77% to €1.14 billion in the nine months that ended September 30 from €645 million a year before.
Revenue rose 33% to €9.72 billion from €7.29 billion.
'Significant cost inflation is being recovered in corrugated box pricing as anticipated. Against strong comparisons, corrugated box volumes were flat for the first nine months,' Smurfit said.
It expects to deliver annual earnings before interest, tax, depreciation and amortisation of €2.3 billion.
In the FTSE 250, shares in carmaker Aston Martin Lagonda dropped 11%, as it warned about costs and cash flow.
For the whole year, Aston Martin expects wholesale sales of 6,200 to 6,600 units, revised down from 6,600.
'In addition to this revision to our volume outlook, we are also incurring incremental costs specifically associated with mitigating [supply chain] issues, impacting margin expansion. We now have visibility on resolution to these isolated supply chain disruptions, including the associated incremental costs, which we expect to be in the range of approximately £20 million, and are confident of optimising Q4 to ensure the best transition into 2023,' Aston said.
It expects cash inflows from 'more normalised working capital dynamics' to only become visible towards the end of the fourth quarter and into early next year.
Aston Martin's revenue in the third quarter increased 33% to £315.5 million from £237.6 million, with revenue in the year to date up 16%. Pretax loss in the third quarter widened to £225.9 million from £97.9 million a year prior, however.
On AIM, Atlantic Lithium soared 23%. The Africa-focused lithium explorer and developer reported strong assays from drilling at the Ewoyaa Main, Grasscutter East, Grasscutter West and Anokyi deposits in Ghana.
This included the 'highest reported single reverse circulation assay result to date' of 4.52% lithium oxide over 1 metre in hole GRC0704 from 54 metres and 3.99% lithium oxide from 53 metres.
In Asia on Wednesday, the Japanese Nikkei 225 index lost 0.1%. The S&P/ASX 200 in Sydney closed up 0.1%
In China, markets continued to rally amid unconfirmed rumours that the Chinese government intends to pivot away from its zero-Covid policy. The Shanghai Composite closed up 1.2%, while the Hang Seng index in Hong Kong was up 2.4%.
Nonetheless, it comes as Chinese authorities imposed lockdowns on 600,000 people in the area surrounding the world's largest iPhone factory on Wednesday, after workers fled to avoid a coronavirus outbreak and the resulting restrictions.
All people except Covid-prevention volunteers and essential workers 'must not leave their residences except to receive Covid tests and emergency medical treatment', officials from central China's Zhengzhou Airport Economy Zone said.
The move comes after images emerged on Chinese social media last week showing people breaking out of the facility, which is run by Taiwanese tech manufacturer Foxconn and makes products for Apple.
Commodities were aided by the softer dollar and hopes for an improved economic outlook for China. Gold was quoted at $1,654.23 an ounce early Wednesday, higher than $1,644.63 on Tuesday. Brent oil was trading at $95.26 a barrel, higher than $94.48.
The economic calendar has manufacturing PMIs from the eurozone and Germany already out, before the Fed interest rate decision at 1800 GMT, which is an hour earlier in Europe and the UK than normal due to the time change in Europe on Sunday.
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