UK stocks gain ahead of key US inflation data; AstraZeneca rises

Dec 5 (Reuters) - UK shares edged up on Friday, with drugmaker AstraZeneca rising, while investors awaited key U.S. inflation data that could shape the Federal Reserve rate decision next week.

The blue-chip FTSE 100 .FTSE was up 0.2% by 11:05 GMT, while the midcap FTSE 250 .FTMC rose 0.4%, and both looked set to end the week little changed.

Britain's housing market slowed in November in both annual and monthly terms in the run-up to the government's budget, data from mortgage lender Halifax showed on Friday.

Home builders .FTNMX402020 were up 1.1%.

The investment banking and brokerage services index .FTNMX302020 rose 1.5%. Investment firm 3i Group III.L gained 3.1%, the most in the FTSE 100.

Personal goods shares .FTNMX402040 led sectoral gains, with Watches of Switzerland rising 4% after three brokerages raised their price targets. Burberry BRBY.L and Dr. Martens DOCS.L added 2.8% and 1.3%, respectively.

Chemicals shares .FTNMX552010 gained 1.7%. Specialty chemicals makers Elementis ELM.L and Victrex VCTX.L rose more than 3% after Jefferies raised price targets for both.

On the flip side, oil & gas shares .FTNMX601010 dragged on the index, down 1.8%, with giants BP BP.L and Shell SHEL.L falling 2.4% and 1.5% respectively, tracking a dip in oil prices.

Bank of America Global Research cut BP's rating to "underperform" from "neutral".

Among individual stocks, AstraZeneca AZN.L added 1.3%, snapping a six-day losing streak.

Technology group Ocado OCDO.L climbed 5.3% after it said that it will receive $350 million payout from Kroger after shutting its robotic warehouses.

Bakery chain owner Greggs GRG.L jumped 5.7% after J.P. Morgan initiated coverage with "overweight".

Investors globally awaited U.S. personal consumption expenditure data (PCE) - the Fed's preferred gauge of inflation, ahead of the interest rate decision next week, where markets are pricing in a 25-bps rate cut.