A recovery on Wall Street has helped limit the losses in London, and by the close of trading over here, the FTSE 100 has managed to regain the 6000 level after its earlier falls.
US investors seem to have got over the shock of poor housing figures, and decided to concentrate on some reasonable figures from insurer Travellers, Dow Chemicals and car group Ford.
So the leading index - down 130 points at its worst - closed 32.9 points lower at 6050.7.
There was also some respite for the beleagured banks, with Barclays down just 0.5p at 455.25p as it tried to reassure investors about its earnings and balance sheet. The bank also seemed to play down the idea it would make a rights issue, although it is looking at all options for rebuilding its capital base.
Attention turned to HBOS, widely regarded as one of the banks most likely to need more cash from shareholders. Its shares fell 11p to 489p.
But Alliance & Leicester, under the cosh yesterday above and beyond its shares going ex-dividend, ended up in positive territory, up 2p to 493p.
