Geopolitical tensions fall
There were positive signs in the Ukraine-Russia dispute this week. Russia said the dispute over its "humanitarian convoy" to Ukraine had been resolved and a Ukrainian official said "moderate progress" had been made after five hours of talks.
Meanwhile, official U.K. inflation figures showed consumer prices slumped to a near-five-year low last month. The year-on-year figure read 1.6 percent, lower than the forecast of 1.8 percent. Sterling fell sharply against the dollar after the release. The FTSE 100 performed in line with other benchmarks, closing unofficially 0.6 percent higher.
Read MoreUK July inflation falls, rate hike move 'squashed'
U.S. stocks climbed on Tuesday, with the Nasdaq Composite building on Monday's 14-year high, as economic reports offered a benign view on inflation and cast a better-than-anticipated light on the housing market.
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