Investors are keeping their powder dry ahead of key events this week, notably the latest European Central Bank meeting and US non-farm payroll figures.
The FTSE 100 has edged 4.60 points lower to 6642.00, with retailers under pressure after Next warned it might have to reduce its profit forecast if the current warm weather continued. It said the unusually mild autumn was putting people off buying winter clothing, news which has sent Next shares down 265p or nearly 4% to £66. The retailer usually has nothing but good tidings for investors, so the hint of a slowdown has hit it hard.
And its comments about the weather have helped push Marks & Spencer down 12.8p to 402.6p, and even Sports Direct International is 8p lower at 626p.
Overall, the caution mood in the market continued, with the protests in Hong Kong, worries about the effect of airstrikes on Isis, and a disappointing Chinese manufacturing survey. The HSBC-Markit purchasing managers index stood at 50.2 in September, down from a preliminary estimate of 50.5.
Housebuilders have slipped back after Nationwide said UK house prices fell by 0.2% in September, with Persimmon down 13p at £13.30 and Bovis Homes 13.5p lower at 777p. Bovis also announced its finance director Jonathan Hill was leaving to join Saga.
Chip maker Arm has fallen 17.5p to 907p after analysts at Bernstein cut their rating from market perform to underperform.
On the positive side Royal Bank of Scotland has risen 13.7p to 375.1p after it said £800m of provisions would be released as economic conditions improved.
Testing equipment specialist Intertek has added 94p to £26.61 as it appointed Andre Lacroix from Inchcape as its new chief executive to replace the retiring Wolfhart Hauser.
