The FTSE 100 was up 21 points to 5,904 by 1315 GMT in poor turnover of just 305m shares after indications of a positive opening later on Wall Street.

Liffe's March FTSE contract was 52 ahead at 5920, with fair value estimated at 36 points.

Investors continue to exhibit a cautious approach to the launch of the euro, dealers said, which left London well adrift of runaway European markets, down 60 points at one stage.

"People are still sticking with the 1998 success stories for the moment," said one trader of London activity. "The big players will be reluctant to get involved for the first couple of weeks while they work out their strategies and see what the euro/dollar exchange rate settles down to."

"I expect the market will be jittery for the next couple of weeks or two," he said, adding that data due out over the next couple of weeks on retail sales, as well as a possible move on interest rates, will give the market firmer direction.