Key shares drew some support from expectations of a firm start on Wall Street and a bounce off lows for banking stocks and index futures.

The FTSE 100 was down 34.3 at 5793.6 off a low of 5768.7.

"Bankers Trust was a noted early seller of the future, which dragged the cash market down," said one broker from a UK trading house.

Banking shares featured among the heaviest losers after Barclays' admission that full-year profits would not meet forecasts, but the list was also diluted by the likes of ICI and Hays.

Barclays recovered from a low of 1350 to stand 8% or 119p easier at 1369.

Dealers said the latest rumour circulating trading rooms was that former Chancellor Kenneth Clarke would take over as chief executive.

Bass climbed 3% after Merrill Lynch moved its stance to accumulate from neutral.

Full-year results, due next week, are expected to show improving earnings from hotels.