The FTSE 100 is slightly down in early trading with a fall of 6.1 points, or 0.09%, to 6,559.6, despite continued takeover speculation, as investors prepare for inflation data following last week's rise in interest rates.
Wm Morrison Supermarkets is up 2.29% to 335.25p, on reports private equity group CVC is studying a potential bid for the chain, while Compass Group has gained 0.42% to 360p, as it confirmed its Selecta vending machine unit has been sold for £772.5, to the private equity arm of German financial group Allianz.
Rio Tinto is among the biggest losers with a fall of 1.48% to £35.98, on reports it has hired investment bank Morgan Stanley to help defend it against a potential hostile takeover bid.
Elsewhere Antofagasta is down 1.04% to 547p, closely followed by BHP Billiton which is down 0.41% to £12.18, while Xstrata has slipped 0.22% to £27.58, although RBS is up 0.62% to 651p, while Barclays is down 0.49% to 713.5p.
In Japan, the Nikkei 225 Stock Average added 124.22, or 0.7%, to 17,677.94, as exporters rose following a report which showed easing US inflation.
Toyota, the world's largest carmaker by market value, advanced 170 yen, or 2.4%, to 7,320, while Nissan jumped 55 yen, or 4.5%, to 1,291, and Sony gained 90 yen, or 1.4%, to 6,540.
JFE, Japan's second-biggest steelmaker, advanced 210 yen, or 2.9%, to 7,430, while Mitsui O.S.K. Lines, Japan's No. 2 shipping company, added 12 yen, or 0.8%, to 1,604, and Tokyo Electron surged 440 yen, or 5.3%, to 8,690.
Elsewhere Eisai, which makes stomach ulcer drugs, surged 700 yen, or 13%, to 6,230, while Isuzu, Japan's largest maker of light-duty trucks, dropped 42 yen, or 6.7%, to 585, and Nippon Telegraph & Telephone, Japan's No. 1 phone company, slid 40,000 yen, or 6.6%, to 566,000.
In the US on Friday, the Dow Jones Industrial Average rose 111.09, or 0.84%, to 13,326.22, as investors seemed to welcome economic reports on inflation and retail sales.
Only one stock ended the session down, as Johnson & Johnson slipped 0.37% to $62.27, although the loss was more than offset by Honeywell International which advanced 1.64% to $57.79.
However, Exxon Mobil posted the biggest gains with a rise of 2.32% to $81.23, closely followed by Merck which added 1.8% to $52, while AT&T climbed 1.75% to $39.59, and General Motors rose 1.62% to $29.46.
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£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards