After the FTSE 100 index faltered in late morning trading, it has rebounded back towards the gains it made at the open - but still remains below the 6,000 mark.
The rebound comes as concerns over weakness in the Chinese economy continue to weigh on European markets.
The UK's blue-chip index rose 0.44 per cent to 5,979 points in early afternoon trade, despite losses at Sports Direct, miners and oil companies.
After Chinese authorities scrapped the controversial circuit-breaker mechanism yesterday, "the bigger question now is whether Chinese authorities can restore some vestige of credibility over the coming days and weeks in the face of a currency that still remains broadly overvalued on a trade weighted basis, and is likely to continue to go lower, in the process placing further downward pressure on global inflation and commodity prices," said Michael Hewson, chief markets analyst at CMC Markets.
As for oil companies, BP was down 1.79 per cent at 331.63p per share, while Shell fell 3.11 per cent to 1,416.5p per share.
Sports Direct led the FTSE lower, down 6.99 per cent to 475.95p per share after announcing it will probably miss its profit target.
Hewson also suggested that attention will now shift towards this afternoon’s US December employment report - although he added: "to some extent [it] probably no longer carries the importance that was attached to it throughout 2015, now that we’ve got that first rate hike out of the way".