Britain's FTSE 100 index gave up slim gains by mid-session today with weaker crude prices weighing on oil shares.
Standard Chartered jumped on bid speculation, despite a denial from the bank.
The blue-chip index was down 7.2 points or 0.1 per cent to 5,286.0 by 12.40 p.m., with market volume a moderate 760 million shares and FTSE 100 gainers outnumbering losers by three to two.
Analysts said there were some signs of confidence in the prospects for a recovery in the US economy next year, and geopolitical jitters were easing as the Taliban's last northern stronghold toppled in the Afghanistan.
There was selective weakness among oil stocks, with BP falling 2.3 per cent against a background of weaker oil prices after Russia's offer of a meagre fourth-quarter output cut.
Drugs giant GlaxoSmithKline fell 2.2 per cent to 1,808 pence, extending a run of losses last week.
Mobile phone heavyweight Vodafone rose 1.5 per cent to 186-1/4 pence, adding eight index points after Credit Suisse First Boston raised its price target on the stock to 220 pence from 180p.
Elsewhere among telecoms, mmO2 fell 4.8 per cent to 88-1/2 pence, retreating after a solid performance since it was listed. BT Group slipped 1.6 per cent. The two firms were broken out of the old British Telecom.