Blue-chip shares gave up mid-session gains to finish little changed today as investors digested the implications of Syriza's election victory in Greece while there was a sharp fall for spurned takeover target RSA Insurance.
The FTSE 100 Index was as much as 60 points up during the day before closing just 4.6 points above its opening mark at 6108.7.
London's top-flight had shed more than 80 points in the previous session last Friday after the US Federal Reserve's decision not to raise rates had highlighted a gloomy view of gathering global risks that meant the US economy was not ready for a hike.
Focus turned to Greece as the new week began after Syriza won snap elections it had called after its U-turn on tough reforms that allowed the debt-laden country to access a new bail-out package.
The decisive result gave prime minister Alexis Tsipras a mandate to roll out the tough programme of cut backs and pension reforms though some analysts questioned his party's commitment to them.
In Europe, France's Cac 40 added 1% and Germany's Dax also saw gains despite being dragged back by the woes of car making giant Volkswagen. The Dow Jones Industrial Average was ahead at the time of the close in London.
Volkswagen's shares fell by 19% after it admitted rigging US emissions tests for nearly 500,000 diesel cars and was ordered to recall them. It also faces billions of dollars in fines.
On currency markets, sterling was lower against the US dollar at 1.55 and ahead by a cent against the euro at a little over 1.38 on latest speculation about more loose monetary policy for the eurozone.
In London shares, RSA was the big faller after Swiss rival Zurich pulled out of a £5.6 billion takeover.
Zurich ditched plans for a bid after revealing a slump in its general insurance business and a 275 million dollar (£177 million) hit from a series of explosions at a Chinese storage station last month.
RSA shares had rocketed after the board indicated it would recommend the 550p per share offer. But the collapse of the takeover sent shares 21%, or 106.2p, lower to 403.3p. Zurich fell 3%.
Drugs firm Shire was among the FTSE 100 risers after European approval for one of its drugs and a broker upgrade for the stock from Barclays. Shares added 50p to 4795p.
In the FTSE 250 Index there was more gloom for engineering manufacturer Rotork after it was hit by a profit warning last week Shares fell a further 6%, or 11.5p, to 175.1p, after a downgrade from brokers at JP Morgan Cazenove.
Meanwhile, fashion retailer French Connection was lower after it saw half-year losses for the six months to the end of July double to £7.9 million as sales slumped. Shares fell 9%, or 2.5p, to 25.5p.
The biggest risers in the FTSE 100 Index were London Stock Exchange Group, up 52p to 2444p, Wolseley up 87p to 4223p, Lloyds Banking Group up 1.5p to 74.2p and Hikma Pharmaceuticals up 45p to 2490p.
The biggest fallers in the FTSE 100 Index were RSA Insurance down 106.2p to 403.3p, Glencore down 7p to 119p, Standard Chartered down 30.6p to 692.1p and Anglo American down 25.1p to 694.9p.
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