FTSE drops slightly, but maintains two-year high

Rolls-Royce shares pulled out of their nosedive today as the group said it was making progress on finding the cause of the engine failure that forced a Qantas jet to make an emergency landing.

The manufacturing group closed 3% higher having fallen 4% in early trading after the chief executive of Qantas said oil leaks were found in three engines on its A380 fleet.