The FTSE 100 stood down just 0.15 per cent at 9:18 BST, after an initial fall led by Wall Street was recouped.
The index stood at 5.304.70, a touch below yesterday's closing price.
Last night the Dow Jones and Nasdaq fell 2.11 per cent and 2.0 per cent respectively after concerns about banking in the US following the move by federal regulators to close two regional banks that were undercapitalised.
News of a further £5.7 billion write-off from Merrill Lynch also hit financial stocks in the UK.
Barclays fell 7.01 per cent, Royal Bank of Scotland dropped 5.31 per cent and HBOS was down 4.61 per cent.
Kingfisher and Schroders fell 3.77 per cent and 3.67 per cent respectively.
As banking fell, energy and commodity stocks rose, maintaining a backbone for the index.
Cairn Energy climbed 4.05 per cent, Tullow Oil was up 3.08 per cent, BP rose 3.03 per cent also boosted by its rise in profits and Antofagasta gained 2.59 per cent.