The FTSE 100 Index closed flat today, down one point at 5,792.2, after clawing its way back from earlier losses.
A positive opening on Wall Street helped buoy London stocks, but investors remained cautious as eurozone woes continued to weigh on their minds.
Luxury fashion group Burberry saw around £1.3billion wiped off its stock market value after warning full-year profits would be at the bottom end of expectations.
Shares in the blue chip firm tumbled by 21% or 287p to £10.88, leaving the stock at its lowest point since last October.
Royal Bank of Scotland continued to offer some support to the market however, amid ongoing speculation it will unveil plans for the flotation of its insurance arm Direct Line Group as early as this week.
The lender’s shares were ahead 11.7p at 264.7p.
Outside the top flight, shares in SuperGroup leapt higher after the Superdry owner eased concerns over recent trading conditions by reporting UK like-for-like sales growth of 1.7% for the 13 weeks to July 29. Shares were 36p higher at 567p.
The biggest Footsie risers included International Consolidated Airlines Group up 4.9p to 154.8p, Barclays ahead 5.75p to 213.5p and British American Tobacco up 57.5p to £31.82.
Among the biggest Footsie fallers were Kingfisher down 9.4p to 272.3p, Fresnillo off 49p to £17.07 and Ashmore Group down 8.7p to 331p.
Elaine McLachlan, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted that risers included auctioneers John Swan up 12% at 350p, while Havelock Europa gained 8.8% to 10.9p.
Fallers included Johnston Press, down 7% at 5.4p, Parkmead off 2% at 11.63p and eye specialist Optos down 1.7% to 175.5p.