The FTSE 100 was 34 points lower at 6,589 as of 09:20.

“Today we have the latest manufacturing PMI numbers for September [in the UK] and there is a risk that the uncertainty surrounding the Scottish referendum may have prompted a slow down here,” said CMC chief market analyst Michael Hewson.

“As it was, in August, we saw manufacturing activity slump to a 14-month low at 52.5, though expectations for the September number today are for a modest uptick to 52.7.”

Ahead of that reference, the latest German purchasing managers index (PMI) came in at 49.9 for September, marking the first contraction in the sector in 15 months.

In parallel, earlier this morning China’s national bureau of statistics released its official manufacturing sector purchasing managers’ index, which came in at 51.1 for September, as expected.

The figures prompted economists at Capital Economics to write: “Today’s official PMI suggests the while conditions have held up better than many had expected on the back of healthy foreign demand, the cooling continued to weigh on economic activity and import demand.

“[…] the PMIs also show that domestic demand remains subdued and that the cooling property sector continues to be a drag.”

Tesco shares act as a drag on the entire sector

In company news, Tesco has been notified by the financial regulator that a full investigation has begun into its recent profit overstatement. The Financial Conduct Authority (FCA) notified the FTSE 100 grocer that it will look into its £250m overstatement of expected profit for the half year, alongside the “independent” review by Tesco’s accountants Deloitte. Tesco said it will continue to co-operate fully with the FCA and other relevant authorities considering the matter.

Second quarter numbers from Sainsbury were better than expected, with like-for-like sales down 2.4 per cent as competitive forces in the grocery market accelerated. Like-for-like sales for the first six months of the year have therefore fallen 2.1 per cent and the company expects this to be roughly repeated in the second half. Total retail sales for the second quarter were down 0.8 per cent excluding fuel, meaning total retail sales for the first half were flat excluding fuel.

Building merchant Grafton Group has completed the acquisition of Brussels-based Gedimat-Ginion. Grafton said the addition expands and complements its coverage of the Brussels market following the acquisition earlier this year of Mpro.

FTSE 100 – Risers
Royal Mail (RMG) 406.90p +3.75%
Wolseley (WOS) 3,295.00p +1.63%
Imperial Tobacco Group (IMT) 2,680.00p +0.60%
Carnival (CCL) 2,477.00p +0.53%
Barclays (BARC) 228.40p +0.42%
Burberry Group (BRBY) 1,517.00p +0.40%
TUI Travel (TT.) 390.50p +0.36%
Compass Group (CPG) 1,000.00p +0.35%
Capita (CPI) 1,168.00p +0.34%
CRH (CRH) 1,414.00p +0.28%

FTSE 100 – Fallers
Morrison (Wm) Supermarkets (MRW) 160.20p -4.81%
Sainsbury (J) (SBRY) 242.90p -3.42%
BG Group (BG.) 1,105.50p -3.03%
Tesco (TSCO) 180.55p -3.03%
Tullow Oil (TLW) 629.50p -2.33%
British Land Co (BLND) 691.00p -1.64%
Anglo American (AAL) 1,364.00p -1.45%
Randgold Resources Ltd. (RRS) 4,149.00p -1.43%
Fresnillo (FRES) 749.50p -1.38%
Antofagasta (ANTO) 711.50p -1.32%

Source: ShareCast