The FTSE 100 closed marginally in the red despite weakness in the pound following warnings over a possible no-deal Brexit rate cut from Mark Carney.
London's top flight closed down by 6.04 points at 7,416.39 on Wednesday.
The UK markets remained steady as traders count down to the G20 summit on Friday.
The pound was cautious as a combination of the increasing possibility of a no-deal Brexit under Boris Johnson and rate cut warnings from the Governor of the Bank of England weighed it down.
Fiona Cincotta, senior market analyst at City Index, said: "The pound remains firmly below 1.27 US dollars, spooked not only by Boris Johnson's do-or-die Brexit attitude, but also by the Bank of England (BoE) threat of a potential rate cut in the case of a no-deal Brexit.
"Currently the BoE has a smooth Brexit with a deal as a base case scenario. Recognition by BoE Governor Mark Carney that the assumption might have to be changed has unnerved pound traders."
The pound was flat at 1.269 versus the US dollar and declined 0.10% to 1.115 against the euro.
In the US, the major indices opened higher as traders appear optimistic ahead of the G20 summit.
The European markets were mixed however, dipping slightly after US Treasury Secretary Steve Mnuchin said a trade deal with China was "90% done".
The German Dax increased by 0.14% and the French Cac fell back by 0.25%.
In stocks, shares in troubled womenswear retailer Bonmarche plunged after it said it is backing a cut-price £5.7 million bid by billionaire Philip Day following further trading woes.
The firm U-turned on its previous rejection of the bid, saying it recommends shareholders accept the 11.4p-a-share offer tabled in April after "poor" first-quarter trading.
Shares in the company fell by 4.1p to 11.4p on Wednesday.
We Buy Any Car owner BCA Marketplace saw shares rise after it confirmed it received a £1.9 billion bid for the group from private equity house TDR Capital.
Bosses at the car auction group have recommended that shareholders accept the offer, which will go to an investor vote.
Shares in BCA closed up 5.6p at 241p.
Shares in Stagecoach rose after the transport giant confirmed its commitment to buses and said it will not bid for more rail franchises after its operations end in November.
The news came as it posted a 3.6% rise in full-year underlying profit to £132.9 million for the year to April 27.
Shares in Stagecoach closed up 3.4p at 121p.
STV saw shares rise slightly after it acquired a majority stake in unscripted producer Primal Media.
STV shares closed up 1p at 353p.
The price of oil surged after the Energy Information Administration report revealed a significant drop in US oil inventories.
The price of a barrel of Brent crude oil rose by 1.09% to 66.5 US dollars.
The biggest risers on the FTSE 100 were Evraz, up 25.4p at 664.4p, IAG, up 9.9p at 449.4p, Carnival, up 63p at 3,475p, and Barclays, up 2.4p at 149,3p
The biggest fallers on the FTSE 100 were Rolls Royce, down 24p at 850.2p, Micro Focus down 43p at 2,055.5p, Fresnillo, down 18.2p at 874.8p and Schroders, up 57p at 3,016p.
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