Footsie bounced higher after sliding to its lowest level for 18 months.
At 6,217, the FTSE 100 index gained 34 points having earlier dropped to the level seen in summer 2013 after losing close to 9% of its value in six trading days.
Overnight data from China, a key buyer of commodities, showed a contraction in manufacturing activity. This, along with the continuing slide in oil prices, meant resource stocks were on the back foot again.
BP (LON:BP.) was 2% lower as the price of Brent crude fell below US$60 a barrel. Tullow Oil lost 1.7%.
Randgold Resources (LON:RRS) was the heaviest faller. Shares in the gold miner fell 3.5% and below the 4,000p mark as gold slumped back to US$1,195 an ounce.
Fellow miners Fresnillo (LON:FRES), Antofagasta (LON:ANTO) and Anglo American (LON:AAL) were also at the wrong end of the index.
Elsewhere, most London-listed banks passed the Bank of England’s stress tests. HSBC (LON:HSBA) down 4p to 558p, Barclays (LON:BARC) flat at 224p, Santander, Standard Chartered (LON:STAN) and Nationwide all passed.
The Co-operative Bank failed while Lloyds (LON:LLOY) up 1p to 74p and RBS down 1p to 362p (LON:RBS) were found to be at risk in the event of a "severe economic downturn" after the assessment.
Water company United Utilities (LON:UU.) was the top riser, up 14p to 910p, and still doing well after Ofwat set out price restrictions last week.
In the AIM world, Edenville Energy (LON:EDL) shot up 30% after positive coal quality results from the near-surface seam at Mkomolo, part of the Rukwa Coal Project, near Sumbawanga in Western Tanzania.
Shares in Mariana Resources (LON:MARL) jumped 20%. The firm said the takeover of Aegean Metals group is set to be completed by the middle of next month as it revealed drilling had begun on one of the latter’s projects.
Gulf Keystone Petroleum (LON:GKP) gained 7% as it said it is preparing to step up production to its 40,000 barrels per day target, following the completion of a three-well programme in Kurdistan.
Shares in Sula Iron & Gold (LON:SULA) lost a quarter of their value despite chief executive Nick Warrell saying he was ‘very pleased’ with the maiden resource estimate for the Ferensola iron ore deposit in Sierra Leone.
Drinks firm Distil (LON:DIS) was down 20% after revenue fell in the first half.
Some of its key brands, which include Bladvod black vodka and Blackwoods gin, are taking longer than expected to gain approval in certain markets.