The FTSE 100 Index has dropped 13.1 points, or 0.2%, to 6216.7 paced by Reed Elsevier and Vedanta Resource.
Reed Elsevier, owner of the LexisNexis database and the Harcourt educational publisher, has dropped 2.1% to 588p. The company said it expects to reach its target of 5% so-called organic revenue growth and a 10% increase in earnings per share.
Vedanta Resources, India's largest producer of copper and zinc, has lost 4.3% to 1,327p. The company said first-half profit quadrupled to $447.6m. That still missed the £486m median estimates of ananlysts.
In Japan stocks fell, led by lenders after the Bank of Japan left its key interest rate unchanged today, impeding banks' ability to lift loan rates, while Shinsei Bank cut its full-year profit forecast.
The Nikkei 225 Stock Average declined 79.60 points, or 0.5%, to 16,163.87 at its close a short time ago.
Mitsubishi UFJ Financial Group, Japan's biggest bank, lost 40,000 yen, or 2.7%, to 1.43m. Mizuho Financial Group declined 9,000 yen, or 1%, to 856,000.
Shinsei slumped 15 yen, or 2.3%, to 634. The first Japanese bank bought by overseas investors lowered its net income estimate for the year ending on March 31, 2007, by 9.5% to 76bn yen.
Inpex advanced 18,000 yen, or 1.9%, to 968,000. Japan's biggest oil explorer said it had a first-half profit of 64.7bn yen as record crude oil prices boosted the value of the oil and natural gas it produces.
Meanwhile Wall Street moved into positive territory early yesterday and managed to maintain the good start until the close with the Dow hitting another high rising 33points to 12,251.
Investors were also eyeing minutes from the last Federal Reserve meeting for clues on future rate decisions. There were no surprises in the minutes but they did underline the belief that the US economy was headed for a soft landing rather than a recession.
US Airways is offering $8bn in a cash and stock deal for Delta Air Lines when the group comes out from bankruptcy court protections. The rest of the airline sector also benefited with shares in US Air and Amex Airline both boosted on the news.
Press reports also suggested Boeing is set to announce a $10bn deal in new aircraft sales.
Altiris raced ahead on reports that it was on the verge of expanding a lucrative deal with computer giant Dell.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected]isivemedia.com.IFAonline
Volatility expected for 'some months'
PA360 North revisited
Achievements, charity work and other happy snippets
Irish border, resignations, market volatility and more