After big swings earlier in the week, the FTSE is currently hovering around the unchanged mark. Fears over the fortunes of UK banks are easing following warnings about possible market manipulation from regulators and the index of bluechips has now even pushed into positive territory.
The FTSE 100 is currently up 9 points at 5615, tiny gains but a marked contrast from an earlier fall of some 80 points.
Barclays is now the top riser, up 4%, with other big banks not far behind following assertions from the Bank of England that it is not aware of any UK bank problems.
The announcement and separate comments from the Financial Services Authority have helped the morning's biggest victim of crisis talk, HBOS, recover somewhat. The home of the Halifax is now down just 19p, or 4%, at 461.25p, having earlier fallen through 400p.
The day's biggest faller on the FTSE 100 is now retailer Next, down 4.6% to £11.25 after following its warning of growing pressure on sales as the gloom on the high street deepens.
Charles Nichols, analyst at Landsbanki, says: "Overall this is a disappointing statement. Although management sees signs of improvement in the retail chain the guidance on like-for-like sales is much more adverse than feared."
One stock worth taking a look at among the midcaps is the FTSE 250's strongest riser Premier Farnell. The electronics components distributor is up more than 11% at 158p after posting an 18% jump in annual profits and increasing its final dividend for the first time in a decade.
Chief executive Harriet Green said the fourth quarter was particularly strong and she sounded an upbeat note about the current year.
"We have made a good start to the new financial year and have carried the momentum from the fourth quarter into the first quarter," she said.
Finally, sticking with the midcaps, easyJet remains the day's biggest faller, currently down 45p, or 12%, at 330p. The budget carrier's warning that higher fuel prices will dent its profits this year have rattled other airlines, and British Airways is down 3% at 223.25p.
