Airline shares lower after terror attack

Shares in Easyjet and BA owner IAG both closed lower in the wake of Sunday's assaults in London.

Easyjet was down 3% and IAG down 2.4%. Madame Tussuad owner Merlin also fell 2.4%.

The wider FTSE 100 closed slightly lower, slipping 0.3% to 7525.55.

Ocado shares closed down 1.7% despite the online retailer securing its first overseas deal to set up an online grocery service for a European retailer.

Ocado's shares had initially greeted the news with a 7% surge.

Ocado, which had originally pledged an overseas deal by the end of 2015, did not name the retailer or say how much the contract was worth.

Ocado's shares have risen by 37% in the past two months and Neil Wilson, analyst at spread betting firm ETX Capital, said the drop could be linked to investors deciding to take profits.

However, he said it was still unclear what value the deal would bring to Ocado.

"We don't even know who the company is - Ocado simply dubs it a 'regional' retailer (not a national one). This is progress after a lot of promises, but it's not exactly like doing a deal with Wal-Mart - yet," he said.

Old Mutual was among the biggest risers, gaining 2.4%

The firm was continuing to gain from Friday's announcement that the firm's wealth management arm had snapped up the financial adviser network Caerus Capital Group.

Mining stocks were among the top losers with Antofagasta down 3.6%.

The pound was up 0.25% against the dollar at $1.2926 and 0.55% higher against the euro at 1.1487 euros.