The FTSE 100 Index is ahead just 2.8 points at 3733.3 and hovering just 60 points from last month's six-year closing low.
Telecoms and banking stocks had given the blue-chip index a 45 point start but signs of another difficult session on Wall Street has unsettled traders.
Banking stocks are doing their best to prop up the market with Royal Bank of Scotland up 29p at £12.69, HSBC ahead 10.5p at 660.5p and Lloyds TSB 7p stronger at 494.5p.
Abbey National is again attracting buyers as takeover speculation continues to circle the troubled group. It now tops the Footsie risers board with an increase of 31p to 585p.
Retail stocks have also firmed after Marks & Spencer's brighter-than-expected trading update yesterday.
M&S has lifted another 9.75p to 338.5p, Boots is up 12p to 540p, Next has gained 15.5p to 836p and Dixons has risen 3p to 158p after announcing a £230 million deal to increase its stake in Italy's UniEuro to 95.7 per cent