London Market Report
- 21 July 2014
- From the section Business
The rise came despite Tesco also saying that first half sales and trading profits were below expectations.
A late in the day rally saw the benchmark FTSE 100 index close off the days lows at 6,735, down 0.2%.
Analysts are also watching for the next move by western nations as they pressure Russia over the loss of a Malaysian Airlines flight over Ukraine, thought to have been shot down by pro-Russian separatists.
"Heightened geopolitical tension is part of the reason for the sell-off today. After a good short-term rally, investors have become cautious as there is a lot of uncertainty," James Butterfill, global equity strategist at Coutts, said.
Tobacco shares lost ground following news that a US court had ordered RJ Reynolds Tobacco to pay $23.6bn (£13.8bn) to the wife of a smoker who died of lung cancer.
Shares in BSkyB fell 1.5% after it announced it had bought a 70% stake in Love Productions, the independent production company behind series such as Great British Bake-off and Benefits Street.
Shares in housebuilders took a hit after property website Rightmove said house prices were down 0.8% this month, the first fall seen this year. Barratt Developments fell 2.3% and Persimmon was down 2.5%.