* FTSE 100 closes up 0.2 pct
* RBS day's worst performer
* U.S. data help pare losses
* Capita among companies to report good results
By Joshua Franklin
LONDON, Feb 27 Britain's top share index edged
up on Thursday, lifted by positive U.S. data and assurances from
Fed chair Janet Yellen, despite a sharp sell-off in Royal Bank
of Scotland and increasing tension over Ukraine.
Royal Bank of Scotland skidded 7.7 percent after its
new chief executive outlined plans for a large-scale overhaul
after the mostly state-owned lender reported an 8.2 billion
pound ($13.64 billion) loss.
Upbeat data on U.S. manufacturing goods' orders however
helped the blue-chip index.
"The markets have edged higher on positive data from across
the pond. U.S. initial jobless disappointed but continuing
claims and durable goods have helped sentiment," said Amrit
Panesar, senior trader at Accendo Markets.
Investors also reacted to positively to Federal Reserve
Chair Janet Yellen's testimony to the Senate Banking Committee
on Thursday. She said the central bank would be on alert to make
sure recent signs of weakness in the U.S. economy are due to
cold weather and storms, and not signals of a more fundamental
The FTSE 100 closed up 11.12 points, or 0.2 percent,
at 6,810.27 points.
Weighing on world stocks was a report from Interfax news
agency that Russian aircraft had been put on high-alert on the
"The involvement of Russia would be the bigger worry, that
it's going to lead to frosty ties with the EU and for the U.S.
with Russia," said Will Hedden, sales trader at IG.
Capita was the day's top performer, with shares in the
British outsourcing group surging 6.7 percent after it posted a
14 percent rise in annual profit.
The company said it was confident about 2014 after winning
588 million pounds ($978.29 million) worth of new contracts so
far this year.
Shares in the world's largest advertiser WPP were
down 3.5 percent despite reporting strong trading, with Liberum
and Numis both raising concern over a hit to margins and lower
margin guidance moving forward.
"The main reason for the downgrade is that WPP has taken
down its longer-term margin improvement targets," Liberum said
in a note, cutting the stock to "hold" from "buy".
"While January has started well and the share buyback
programme has increased, this does not offset the disappointing
message on margin improvement," it said.