Blue chip shares pared losses on Thursday as traders welcomed the Bank of England's latest decision to hold interest rates.
The FTSE 100 Index recovered an earlier 18-point drop to stand just five points adrift at 6747 in early afternoon trading.
The BoE's monetary policy committee kept UK interest rates at their record low of 0.5%, with just one committee member voting for a hike.
Economists said the decision indicated a rate rise before next year was unlikely.
Chris Williamson at economic data group Markit said: "The tone of the meeting was more dovish than many were anticipating, meaning the first rate rise is unlikely to be seen until 2016, at the earliest.
"Most policymakers consider the recent fall in oil prices and the strong pound as likely to lead to a slower than previously thought upturn in inflation in the medium term."
But there was disappointing news from UK manufacturing, with official figures showing sector output fell 0.3% in the second quarter despite production rising 0.2% in June.
Falling oil prices triggered losses among oil majors, with the price of a barrel of US light crude dropping to US$44.56.
BP (LON:BP.) backtracked 12.65p to 382.4p and BG Group (LON:BG.) deflated 2p to 1099.5p.
Miner Rio Tinto (LON:RIO) subsided 16p to 2551.5p after blaming lower iron ore prices for a big profit dip.
Randgold Resources (LON:RRS) also reversed 29p to 3804p despite news of a quarterly gold production record.
Shares in GlaxoSmithKline (LON:GSK) were 44p healthier at 1463p on market talk of a potential £98bn takeover by US rival Pfizer or Swiss drug group Novartis.
Takeover target RSA Insurance (LON:RSA) was 11p lower at 513p despite reporting progress in its recovery drive and reinstating its dividend.
Aerospace engineer Cobham (LON:COB) flew 15.9p higher to 278.4p as it posted higher orders, revenue and profit.
Investors in Enterprise Inns toasted a rise in sales as good weather encouraged people to visit the pub. Shares lifted 3.8p to 118.5p.
Among small caps, Sound Oil (LON:SOU) said a gas sales deal has now been signed for the Nervesa gas field with Shell Energy Italia. Shares jumped 10.17% to 16.25p.
Meanwhile, Cloudbuy (LON:CBUY) signed a memorandum of understanding (MoU) with the government of the city of Yiwu in China to help its wholesale marketplace promote itself overseas. Shares climbed 3.8% to 20.5p.
Conversely, shares in troubled firm Quindell (LON:QPP) slumped 26.65% to 91.5p as trading resumed for the first time in more than a month today.
The Serious Fraud Office (SFO) has opened an investigation into the company which is believed to relate to past business and accounting practices.
Shares in Optibiotix Health (LON:OPTI) picked up 0.55p to 40.3p on more research that gastric band surgery helps weight loss by influencing the microbes that govern the metabolic and digestive systems.
Chief executive Stephen O’ Hara said: “The implication being that rather than have bariatric (eg gastric band) surgery you would simply change your microbiome to loose weight and/or ‘cure’ type 2 diabetes.
“OptiBiotix is developing microbiome modulators which can change the microbial flora and this creates the potential to reduce weight without the risks and cost associated with surgery”.