The impact of better-than-expected jobs figures in the US and hopes of central bank intervention on the eurozone debt crisis has helped the top flight index climb to a four-month high at around 5840.
However with sentiment starting to fade, the FTSE 100 Index closed less than five points higher at 5845.9, with German and French markets closing in the red.
Bank of England governor Sir Mervyn King added to the downbeat mood by forecasting zero growth for the UK economy this year, although he did admit that recent GDP figures were not a realistic reflection of output.
With his comments coming as little surprise to economists, the pound was higher against the US dollar and euro at 1.564 and 1.267 respectively.
The fact that a number of high-profile stocks went ex-dividend – meaning their shares no longer hold the right to the most recent shareholder award – weighed on the top tier.
This affected the likes of AstraZeneca, which was off 68p at 3015p, and Royal Dutch Shell with a fall of 25.5p to 2341p.
Standard Chartered showed signs of recovery after losing 16% of its value yesterday in the wake of a US regulator's accusations that the bank was a "rogue institution" for allegedly breaching sanctions on Iran.
The UK bank has hit back, saying 99.9% of the alleged transactions complied with regulations and that any breaches were "small clerical errors". Shares were 87p higher at 1315.5p, a rebound of 7%.
Mining giant Rio Tinto was also on the risers board after it posted first half figures that were in line with expectations and said that it expected to experience a pick up in demand in the fourth quarter.
Shares were 89.5p higher at 3220p, while there was a reaction from other stocks in the sector as Xstrata added 15.6p to 912.5p and Anglo American cheered 19.5p to 2027.5p.
In corporate results, defence and aerospace technology firm Cobham slid 5% after it highlighted the impact on military orders caused by the US presidential elections.
The Dorset-based company also admitted that earnings growth will be flat this year, compared with previous guidance for "modest progress", but said it was hopeful of benefiting from strong demand among civil aerospace customers.
Shares fell 12.8p to 225.7p in the FTSE 250 Index.
Contextual targeting label: