The London market managed to claw back initial losses today to close 3.6 points down at 5,803.3 as the Dow Jones Industrial Average on Wall Street made early session gains.
Stocks had been under pressure on fears that talks to avoid America’s so-called fiscal cliff had stalled, but optimistic comments from House of Representatives Speaker John Boehner helped calm fears on both sides of the Atlantic.
In London, Thomas Cook’s new boss Harriet Green impressed investors with plans to turn the company around despite revealing £590million in annual losses.
Shares in the beleaguered tour operator rose 4%, or 1p to 25p, as the market put faith in Ms Green’s revival programme, which will see another £100million in costs cut.
In the top flight, retail giant Marks & Spencer was one of the biggest risers after securing a 10-year funding plan for its staff pension scheme and revealing a marked fall in its pension deficit. It sparked a 2% hike in shares, up 8.3p to 387p.
BP was on the fallers board however after it was hit with a temporary ban from taking on new US government contracts after it pleaded guilty to charges relating to the deepwater Horizon disaster in 2010. Shares fell 1.9p to 429.4p.
The biggest FTSE 100 risers were Burberry up 34p to £12.74, United Utilities ahead 17.5p to 686.5p, and Arm Holdings up 14.5p to 772.5p.
Among the biggest FTSE 100 fallers were Bunzl down 43p to £10.31, Polymetal International off 37p to £10.42, Evraz 8.1p lower at 231.4p and National Grid down 14p to 698.5p.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that Stagecoach added 3.45% to close at 284.45p, Standard Life strengthened by 1.13% to 314.2p and Xcite Energy moved 1.05% higher to 95.75p.
On the fallers board, Eland Oil & Gas dropped 1.45% to 117.5p, Premier Oil pulled back 1.05% to 330.3p and Aggreko slipped 0.22% to £22.30.