London’s top share index FTSE ended flat on Wednesday as the share markets continued to reel under the pressures of the long-continuing credit crunch, which offset the easing effects of the $20 billion Federal Reserve auction.

London’s top share index FTSE ended flat on Wednesday as the share markets continued to reel under the pressures of the long-continuing credit crunch, which offset the easing effects of the $20 billion Federal Reserve auction. The Federal Reserve auction aimed at alleviating, if not fully solving the liquidity problem. However, after uneven, slow-paced trading, the FTSE 100 index ended up 0.08 percent, or 5.2 points, at 6284.5.

Fed’s Monday auction, which raised a whopping $61.6 billion with bids from some 93 bidders, initially gave a nice boost to the banks and there were some indications that the auction was a welcome relief for the money markets.

Shares of the hedge fund SRM Global went up from 9.51 percent to 9.74 percent and it topped the list of FTSE gainers. Northern Rock, however, became the show-stealer with its shares going up by 4.4 percent.

With the U.S. crude oil prices rising above $91 a barrel, the energy-sector too performed pretty well. Shares of Royal Dutch Shell went up 2.2 percent and BG Group’s shares jumped up 0.5 percent. BP shares, however fell 0.4 percent.

The performance of the UK banking-sector has been rather slow with a number of domestic UK Banks choosing to take a defensive stance after four European banks, including Barclays, were downgraded by Goldman Sachs.

Economists are speculating that the present market conditions have taken an altogether bearish turn and it is quite likely that the present times will see the worst of recessions. Nonetheless, they have not yet given up all hopes. Voicing his hopes, Edward Menashy of Charles Stanley has said that things may take a positive turn and conditions may look up by middle of January.