U.K. stocks were little changed as investors weighed Federal Reserve's minutes that signaled policy makers may slow the pace of bond purchases and data that showed Chinese manufacturing expanded slower than forecast.
British American Tobacco Plc and Imperial Tobacco Group Plc (IMT) each lost at least 1.5 percent as American peer Philip Morris International Inc. forecast 2014 profit growth below its long-term target. Antofagasta Plc (ANTO) and Vedanta Resources Plc (VED) followed miners lower, sliding at least 2 percent. Johnson Matthey Plc (JMAT) gained 3.9 percent after posting better-than-forecast profit and raising its dividend.
The FTSE 100 Index (UKX) fell 1.31 points, less than 0.1 percent, to 6,679.77 at 10:12 a.m. in London, trimming an earlier decline of as much as 0.6 percent. The gauge has climbed 13 percent this year as central banks maintained stimulus measures to support the global economy. The broader FTSE All-Share Index (ASX) was also little changed today, while Ireland's ISEQ Index retreated 0.3 percent.
In the U.S., minutes from the Federal Open Market Committee's Oct. 29-30 meeting released late yesterday showed policy makers may slow the pace of the $85 billion monthly asset purchases if the economy improves as anticipated. The median estimate of economists in a Bloomberg survey calls for the Fed to pare stimulus to $70 billion at the March 18-19 meeting.
FOMC members "generally expected that the data would prove consistent with the Committee's outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months," according to the minutes.
In China, the preliminary reading of a purchasing managers' index of manufacturing for November was 50.4, according to HSBC Holdings Plc and Markit Economics. That missed the 50.8 median estimate of analysts surveyed by Bloomberg and compares with a final reading of 50.9 for October. Readings above 50 signal expansion.
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