The benchmark FTSE index added a marginal 0.09 percent to close at 5,371.04 points.

Bolstering sentiment were reports from Washington that first-time claims for US unemployment compensation fell unexpectedly in the week to August 28 and that pending US home sales had risen sharply in July.

Lloyds Banking Group (LBG) was the most traded stock, seeing 152 million shares switch owners, followed by Vodafone, which saw 95.9 million units change hands.

Investment management business Man Group was the top blue-chip performer, adding 5.77 percent -- or 12.5 pence -- to end at 229, followed by enterprise software company Autonomy Corporation, which rose 5.21 percent -- or 85 pence -- to end at 1,716.

Anglo-Irish oil exploration firm Tullow Oil was the biggest faller, shedding 3.97 percent -- or 49 pence -- to end at 1,185, followed by technology company Arm Holdings, which finished down 3.77 percent -- or 14.1 pence -- at 360.

Meanwhile, at 17:23 BST, sterling was trading at 1.539 dollars while the currency stood at 1.200 euros.