The FTSE 100 Index has lost 29.3 points, or 0.5%, to 5902.8 points this morning, led by consumer goods giant Unilever.
Unilever has dropped 53p, or 4.1%, to 1,236p. The company's second-quarter net income gained 35% to 986m euros, lower than a median estimate of 1.01bn euros in a Bloomberg survey.
Imperial Chemical has fallen 8.25p, or 2.2%, to 369p after it said second-quarter profit fell to £15m from £110m on a European Commission fine.
Barclays has risen 0.64% to 631.50p, saying it enjoyed an “excellent” first half, with profits up 37% thanks to a big performance from its investment banking business Barclays Capital.
Wm Morrison has gained 5.47% to 217p. It served up a 4.6% rise in like for like sales, excluding fuel, in the 25 weeks to July 23.
In Japan, the Nikkei 225 Stock Average added 6.1 points to 15,470.37 points, as shares of exporters rose on speculation companies can increase earnings in the US.
Toyota jumped 150 yen, or 2.5%, to 6,110, Canon added 70 yen, or 1.3%, to 5,490 and Yamaha Motor climbed 100 yen, or 3.3%, to 3,140.
Meanwhile, Kawasaki Kisen Kaisha, Japan's third-biggest shipping company, lost 16 yen, or 2.4%, to 642. It cut its full-year profit forecast by 6.7% when it reported lower earnings after rising fuel prices and falling rates reduced first-quarter net income.
In the US, the Dow Jones industrial average rose 74.20 points, or 0.67%, to end at 11,199.93 points yesterday after Procter & Gamble beat earnings expectations.
Procter & Gamble climbed 4.2%, or $2.36, to $58.29, Time Warner gained 2.6%, or 42 cents, to $16.67 and Adobe surged 13.9%, or $3.94, to $32.28.
Shares of natural gas companies rose on the heat wave in the Northeast United States and as a tropical storm brewing in the Caribbean stirred concerns about supply disruptions and drove natural gas futures prices higher.
El Paso gained 1.5%, or 24 cents, to $16.20 and Cabot Oil & Gas jumped 2.1%, or $1.11, to $54.81.IFAonline
Industry Voice: Scottish Widows pension expert Robert Cochran and economist Andrew Scott discuss the future of employment and income, in episode three of Scottish Widows' podcast series.
What made financial headlines over the weekend?
Follows McVey's resignation
Schroders and Aviva Investors