FTSE 100 Index, British benchmark stock market gauge, Tuesday increased by 0.56 percent, or 38.06 points, to 6,779.31, as geopolitical risk decreases.
The driving force continued to be the easing of political tensions, although there were reports that the ceasefire between Israel and Hamas has been broken after the launch of three rockets from the Gaza Strip.
Traders on Tuesday turned their attention to the inflation figures. The Britain's consumer prices index (CPI) fell to 1.6 percent in the year to July 2014, exceeding the market's expectations, data from the Office for National Statistics (ONS) showed Tuesday.
The inflation rate down from 1.9 percent in July. The rate was now away from the Bank of England's 2 percent target, easing the market's expectation of the central bank rate rise.
In other news, Britain house prices increased by 10.2 percent in the year to June 2014, down from 10.4 percent in the year to May 2014, according to the ONS.
Kingfisher's share price increased by 3.74 percent, topped the gainers of the blue chips. Sports Direct International, 3i Group, Barratt Developments, easyJet increased by 3.34 percent, 3.00 percent, 2.90 percent and 2.61 percent respectively.
BHP Billiton led the top losers of the blue chips with a share price drop of 4.93 percent, followed by Fresnillo (2.99 percent), Rolls-Royce Holdings PLC (1.99 percent), CRH (1.92 percent) and Glencore (1.41 percent).
The index has gained 3.31 percent so far this year when adjusted in U.S. dollar.