London Market Report

  • 4 August 2014
  • From the section Business

(Close): News of a bailout of Portugal's troubled Banco Espirito helped steady markets in early trading, following last week's falls.

But gains were lost after US markets opened lower, with the FTSE ending the day down 1.7 points at 6,677.52.

British Airways owner IAG led the way down, falling 3.3%, while broker Hargreaves Lansdown was 2.1% lower.

On the upside, product testing and certification company Intertek gained 6.8% after raising its dividend.

HSBC bank also rose after posting solid half-year profit figures, rising 0.9%.

Some analysts are concerned that the markets may be heading for a period of turmoil.

Charles Stanley's Bill McNamara expects the downward trend to resume. "I'm becoming concerned about [the market's] loss of momentum over recent sessions," he said.

"I remain very cautious on the UK market at the moment and my own sense is that we are going to see further weakness before we see it back up towards the high."

Elsewhere, shares in insurer Esure were 0.5% higher after it posted a "solid" set of half-year results, with pre-tax profits up 0.4% to £57.1m despite the impact of downward pressure on car insurance premiums.