Luxury fashion brand Burberry reported retail revenues that were flat in the three months to June 30 and warned wholesale revenue would be weaker than previously expected. However, shares rallied to the top of the FTSE 100, closing up 6.3 percent.
In other U.K. business news, Steinhoff agreed a £597 million ($794 million) takeover of the U.K.'s Poundland. Shares of the budget retailer leaped to close up 12.6 percent.
Elsewhere, France's Airbus is slashing production of its A380 superjumbo, which has struggled to win new customers amid a lacklustre market for widebody aircraft. Shares fell on the news, before closing 1.7 percent higher.
Meanwhile, shares of Nokia rallied to close 4.8 percent up after it expanded its patent licensing deal with South Korea's Samsung.