The FTSE 100 is fractionally lower in morning trading despite a small rally from house builders and beleaguered lender Northern Rock.
The index is currently 1.20 points down (0.02%) to 6278.10.
Intercontinental Hotels is leading the losses after a downgrade from Morgan Stanley, it is currently 2.9% lower, to 871.
United Utilities, which owns and operates water and electricity networks in north west England, has also lost ground – falling 1.92% so far, to 739.50.
Persimmon is performing the best on a solid morning for home builders, up 3.06% to 792.50.
Mining giant Kazakhmys is ahead on a mixed morning for the sector, up 2.59% to 1307; while Northern Rock is up on more bid speculation – 2.53% ahead to 89.10.
In New York, Wall Street rallied as the central bank action began to take effect, the Dow Jones climbed 65.27 points (0.50%) to 13232.47.
AIG led the gains after closing lower in the five previous sessions, finishing up 3.07% to 56.70.
An announcement it will offer buyouts and retirement incentives to 5,200 hourly union workers led General Motors to a positive day, closing 2.05% higher to 26.93.
Home Depot advanced 2.04% to 26.47 on a positive JPMorgan assessment.
Meanwhile, JPMorgan Chase and DuPont struggled, falling 1.41% to 43.90 and 1.05% to 43.18 respectively.
In Tokyo, the misery continued for the sixth straight day as the Nikkei 225 index dropped a further 177.35 yen (1.17%) to 15,030.51.
Chemical company Nippon Kayaku dropped 11.21% to 792 after a poor net profit result on weakened for polariser films.
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