Banking stocks and miners came under early pressure as economic fears continued to trouble a range of blue-chip stocks.

But some decent corporate news from personal computer giant Hewlett Packard lifted the mood in the US and the FTSE 100 Index followed suit – clawing back initial losses to close 76.39 points ahead at 4208.55.

Despite the comeback, banks took a pounding as the UK Government set out stringent requirements for banks wishing to access its recapitalisation scheme – seen as a further blow to those investors hoping for a last-ditch alternative proposal to the current HBoS takeover by Lloyds TSB.

HBoS was the leading Footsie faller, dropping 111/2p to 63p, while Lloyds TSB shed 173/4p to 1311/4p and Royal Bank of Scotland fell 3p to 413/4p.

Barclays, which announced changes to its own fundraising plans in an attempt to head off a shareholder revolt, was down 45/8p to 1491/2p.

Among the miners under pressure, Xstrata fell 761/2p to 800p and Lonmin shed 41p to 833p, although Antofagasta topped the risers' board after management predicted a recovery in copper prices during 2009. Shares advanced by 8 per cent, or 281/4p, to 345p.

In a busy session for corporate updates, building supplies firm Wolseley recovered from a weak start to stand more than 7 per cent, or 213/4p, higher at 293p. It reported a 45 per cent drop in first quarter profits, but analysts warmed to cost-savings plans, including the reduction of 2,000 jobs in the UK.

Outside the top flight, easyJet shares dropped sharply after it reported a 45 per cent drop in profits and said founder Sir Stelios Haji-Ioannou declined to approve the accounts.

The carrier fell 251/2p to 251p, a drop of 10 per cent, as the row overshadowed easyJet's comments on an improvement in bookings for the winter season.

Carphone Warehouse suffered similar falls after gloomy comments on the trading outlook overshadowed news it may split off its broadband arm. Shares were 121/4p lower at 118p.

Fellow retailer Burberry was another casualty of the economic conditions after it warned of possible profits disappointment this year. Shares were 14 per cent lower, or 251/4p, at 175p.

Elsewhere, Premier Foods was under pressure, off 21/2p to 28p, as it scrapped its previously announced half-year dividend. Premier said trading was in line with expectations and added that lenders had agreed to defer a covenant test.

On a brighter note, Barratt Developments rose 5 per cent, or 31/4p, to 673/4p – after it reported a pick-up in visitor levels over recent weeks. With inflation figures pointing to further interest rate cuts, other housebuilders were in positive territory. Bovis added 143/4p to 3371/2p and Persimmon rose 3/4p to 2473/4p.

The biggest Footsie risers were Antofagasta, Friends Provident ahead 61/8p to 771/8p, Aviva lifted 30p to 3793/4p and Wolseley. Biggest faller was HBoS.