The FTSE 100 closed higher on Tuesday, gaining 31.10 points, or 0.3%, to finish at 10,529.39, as softer-than-expected US inflation data helped calm market nerves despite persistent pressure from soaring oil prices.
The index managed to shake off a weak start to the session, driven by the positive reception of US consumer price figures for June.
The cooling in US headline inflation, largely attributed to a sharp retreat in gasoline prices, provided a counterbalance to the volatility induced by elevated energy costs.
This dynamic highlights the ongoing tug-of-war between macroeconomic relief and supply-side risks in global markets.
The divergence in market drivers underscores the complex environment facing investors.
While energy prices remain a source of jitters, the broader macroeconomic signal from the US suggests that inflationary pressures may be easing more rapidly than anticipated.