StockMarketWire.com - UK stocks drifted lower in early trading Wednesday as investors weighed progress on US-China trade talks, which are set to intensify at the G20 meeting in Osaka this weekend.

At 0846, the benchmark FTSE 100 index was down 5.96 points, or less than 0.1%, at 7.416.47.

Train and bus company Stagecoach fell 2.1% after it posted a 63% slide in annual profit, owing to losses associated with the disposal of its North American business.

Underlying earnings were boosted a strong underlying performance at the company's UK rail business, though its future has been clouded by a government decision barring Stagecoach from bidding for new franchises.

Services company Wood Group rose 5.2% as it announced that it had grown its earnings in the first half, thanks to an improvement in margins.

Distribution and outsourcing company Bunzl shed 0.8% despite it forecasting expected first-half revenues to rise 4%, while keeping its outlook unchanged.

Tullow Oil added 0.4% after guiding for a gross profit of $500m in the first half on revenue of $900m, though it also flagged an $85m exploration write-off.

In the previous corresponding period, Tullow Oil posted a gross profit of $521m on revenue of $905m.

Womens' fashion retailer Bonmarche tumbled 27% after it warned that it may miss its profit guidance, due to poor trading in the first quarter.

Agricultural product supplier Wynnstay rose 1.6%, despite it booking a fall in first-half profit that it pinned on an unusually warm winter and more cautious farmer spending.

Car auctioneer BCA Marketplace advanced 2.6% after it posted an 18% rise in annual profit.

Printed circuit technology group Trackwise Designs gained 2.0% on announcing that it had made a 'promising' start to the year, and was currently trading in line with market expectations.

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