The pound roared higher thanks to a bigger-than-expected surge in retail sales in an otherwise lacklustre day on the London market.
Sterling gained ground after official figures showed a 1.2 per cent leap in UK retail sales last month thanks to the unseasonally warm weather and as shoppers took advantage of falling prices.
But the FTSE 100 Index struggled to make headway, closing up 6.2 points at 7013.5, with poor economic data from China and Europe weighing on the top flight.
Manufacturing in China shrank for a third straight month in May while a survey of business activity in the eurozone fell to a three-month low.
Germany's Dax and France's Cac 40 were both lower in early session trading, but later clawed back to close in positive territory.
The Dow Jones Industrial Average on Wall Street was also clinging to its opening mark, holding its ground despite figures showing an increase in jobless claims, declines in existing home sales and flash manufacturing figures.
In currency markets, sterling was nearly two cents higher against the US dollar at just under 1.57 while it added a cent against the euro to just under 1.41.
The pound rose as the Office for National Statistics (ONS) reported that UK retail sales bounced back from a 0.7 per cent fall in March, with warm weather helping clothing to its best performance for four years.
The figures raised hopes that the recovery in the wider economy can gather pace in the second quarter after a slowdown in the first three months of 2015.
Meanwhile, there was a mixed picture from a CBI report on manufacturing, with overall order books weakening but exports strengthening.
In stocks, the stand-out performance was from cash and carry group Booker in the FTSE 250 Index as investors cheered its announcement that it was to buy retail chains Londis and Budgens for £40 million.
Shares rose 12 per cent, or 18p, to 170p as the group boosts its scale amid the ongoing supermarket price war.
In other corporate news, Mothercare rose strongly after its results showed it halved annual losses and grew same store sales for the first time in five years as the babywear retailer begins to see the results of its turnaround plan.
The company, which also owns the Early Learning Centre brand, said like-for-like sales at its UK stores grew by two per cent in the year to March 28, compared with a 1.9 per cent fall the year before. Shares rose five per cent, or 10.25p, to 235p.
Also in focus was Royal Mail, as it published annual results. An underlying six per cent rise in annual profits to £740 million and a five per cent hike in the full-year dividend was not enough to lift the stock, with the group giving a cautious outlook. Shares edged 0.1p higher to 500p.
The biggest FTSE 100 risers were Aberdeen Asset Management up 9.6p to 448.5p, Marks & Spencer ahead 10p at 593.5p, Hargreaves Lansdown 21p higher at 1277p and Smiths Group 18p stronger at 1190p.
The biggest FTSE 100 fallers were Taylor Wimpey down 7.8p to 184p, easyJet off 39p to 1610p, IAG Group 13p weaker at 554p and Carnival 60p lower at 3141p.
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