The FTSE share index was modestly higher Friday, consolidating after a leap up to near three-month highs in the previous session, with strength in banks countering weakness in miners and energy issues as commodity prices retreated.
The broker, however, trimmed its target prices for all the UK-listed banks and reaffirmed its preference for UK Asian-focussed lenders HSBC
Sector heavyweight HSBC was up 1.3 percent, but Standard Chartered slipped 0.3 percent after strong gains in the previous session following an EU deal designed to resolve the euro zone debt problems.
European leaders are now under pressure to finalise details of their plan to slash Greece's debt and strengthen the European Financial Stability Fund (EFSF), with the focus also shifting to a Group of 20 meeting next week in Cannes, southern France.
The euphoria of yesterday has quietened as we wait and see whether the non European world will give the plan its full backing, said Mic Mills, head of electronic trading at ETX Capital.
By 08:51 BST, the FTSE 100 index <.FTSE> was up 8.90 points, or 0.2 percent at 5,722.72, having ended 2.9 percent higher on Thursday at its highest close since early August,
The UK blue chip index is up more than 4 percent on the week, and is headed for over an 11 percent rise on the month.
Miners <.FTNMX1770> and energy <.FTNMX0530> stocks were the main drag on the blue chips, retreating after Thursday's surge as commodity slipped back, with crude oil and copper prices both off around 1 percent.
Royal Dutch Shell
Pharma peer Shire
On the macroeconomic front, October's British GfK consumer confidence index, released overnight, showed a drop to minus 32, against minus 30 in September, its lowest level since February 2009.
No other important British data will be released Friday, so the focus will be on a batch of U.S. data, notably September personal income and consumption numbers, due at 1:30 p.m. BST, and the final reading for the Reuters/University of Michigan consumer sentiment index, scheduled for 2:55 p.m. BST.
Investors shouldn't get too ahead of themselves however, as there is still much more to do. The storm has died, but there are still rough waters ahead, said Simon Furlong, a trader at Spreadex.
(Editing by Jane Merriman)