By Sara Sjolin, MarketWatch

U.K.'s index loss wipes out July's gain

Index slips 0.6% to 6,730.11, erasing monthly gain

LONDON (MarketWatch) -- Most U.K. stocks closed in negative territory on Thursday, but a solid performance from Royal Dutch Shell PLC curbed the FTSE 100's losses.

The FTSE 100 index dropped 0.6% to close at 6,730.11, wiping out the gain for July and giving it a 0.2% loss for the month.

Shell (RDSB) put on 2.7% after the oil major said its second-quarter profit more than doubled as it benefited from higher liquid-petroleum prices and higher prices for specific products.

More broadly, the majority of U.K. stocks declined, tracking a downbeat sentiment in the rest of Europe and in U.S. stocks. Additionally, a survey from British lender Nationwide showed house prices in the country in July rose at the slowest pace since April last year.

Among falling stocks in London, shares of Weir Group PLC lost 3.8% after the engineering company reported a 4.8% fall in pretax profit due to the strength of the pound.

Lloyds Banking Group PLC (LYG) fell 2.8% after the U.K. lender said profit fell sharply in the first half of the year due to a number of legacy charges.

Schroders PLC dropped 4.4% after the global asset-management company said the short-term outlook for retail investor demand is uncertain.

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