US stocks pushed ahead, buoyed by financials, despite a hike in jobless figures.
Positive US job figures failed to spur the Dow Jones in early trading on Wednesday.
Lloyds Banking Group is among the fallers in early trading on Wednesday on rumours it is close to securing a deal that will see some of its bad loans insured under the Government's asset insurance scheme.
US stocks pushed ahead after a report showed a revival in manufacturing activity in August after a year and a half of contraction.
UK blue chip shares fell following the Bank Holiday weekend as investors locked in profits from miners.
US blue chip stocks edged up in early exchanges, echoing gains in stock markets across Europe and Asia.
Firmer commodity prices lifted mining stocks and led the FTSE higher on Friday following two sessions of losses.
Lloyds Banking Group is among the early losers on Thursday despite reports it is considering a new form of capital to offer to shareholders in a bid to cut its use of the Government's insurance scheme for toxic assets.
The Dow Jones made marginal gains in early trading on Wednesday after the number of new homes purchased jumped more than forecast in July.
The Dow Jones is higher this morning on improving house price data and a rebound in consumer confidence.