Banks once again lead the FTSE 100 winner's table, but the index remains in the red shortly after midday.
Barclays had added 7.02% to 270p as the FT reports is could sell its Barclays Global Investors asset management business to potential buyers tipped to be BlackRock and the Bank of New York Mellon Corp.
But, as of 12.15pm, the FTSE was down more than 11 points, or 0.27%, to 4,350.
Earlier, Royal Bank of Scotland Group was up 6.08% to 41.6p, continuing yesterday's successful day of trading, while Friends Provident had advanced 5.45% to 75.5p. Lloyds Banking Group gained 3.19% to 90.6p.
However, travel firms Thomas Cook Group and TUI Travel continue to suffer as Brits tighten their purse strings and put plans of exotic holidays on hold. Thomas Cook is the biggest loser so far, falling 2.08% to 223.5p while TUI Travel tumbles 1.18% to 251.75.
In the US, the Dow closed up 46.43 points, or 0.56%, to 8331.32, shrugging off disappointing unemployment figures.
The Labor Department revealed weekly jobless claims rose to 637,000 from the previous week's 601,000. Individuals claiming unemployment benefits also rose from 6.35 million to 6.5 million.
However, US banks rallied, with Citigroup leading the pack, up 4.69% to $3.53. JPMorgan Chase and Bank of America also made gains.
However, General Motors was yesterday's biggest loser, diving 5.79% to $1.14, following CEO Fritz Henderson's warning bankruptcy is "probable".IFAonline
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