The FTSE 100 overcame the drag of weak commodity stocks to close in the green on Tuesday, while the euro briefly dipped below parity with the US dollar for the first time since late 2002.

The FTSE 100 index closed up 13.27 points, or 0.2%, at 7,209.86. The FTSE 250 index ended up 17.98 points, or 0.1%, at 18,854.96. The AIM All-Share index closed down 2.04 points, or 0.2%, at 882.08.

The Cboe UK 100 index closed up 0.3% at 718.85. The Cboe 250 closed up 0.2% at 16,412.39, and the Cboe Small Companies ended 0.1% higher at 13,231.52.

In mainland Europe, the CAC 40 stock index in Paris was up 0.8%, while the DAX 40 in Frankfurt was 0.6% higher.

Oil prices were once again under pressure, translating into broader weakness in the basic resources and energy sector.

OPEC expects conditions on the oil market to remain tight into the coming year, with demand rising faster than supply, according to a report from the cartel's research department released in Vienna on Tuesday.

Growth in demand would exceed growth in supply by a million barrels, OPEC said in its initial report on the oil market for 2023.

At the end of July, OPEC+, which includes non-OPEC producers, significantly Russia, announced an increase in output by 648,000 barrels per day.

Brent oil was trading at $100.37 a barrel Tuesday evening, down sharply from $106.35 on Monday evening. Gold stood at $1,732.30 an ounce, lower against $1,738.10.

Shell gave back 1.3% while BP lost 1.8%. Endeavour Mining ended down 1.3%, Antofagasta 0.8%, Glencore 0.8% and Rio Tinto 0.5%.

Commercial real estate firms were also struggling after RBC downgraded British Land, which lost 1.8%. Land Securities ended down 2.3%, Hammerson 3.7% and Great Portland Estates 3.3% in a negative read across.

Marshalls closed 2.2% higher in the FTSE 250 after a climb in half-year revenue following its acquisition of Marley Group back in April.

The Elland, England-based landscaping products company said that revenue for the first six months of 2022 was up 17% to £348 million from £298 million the year before, which includes the benefit of the acquisition of Marley. On a like for like basis, revenue rose by 7%.

Back in April, Marshall agreed to buy the pitched roof system manufacturer for £535 million. The acquisition was completed later that month.

Marshalls said that Marley has traded ‘strongly’ in its first two full months of ownership and its integration into the group is progressing in line with its internal plans.

At the time of the acquisition, the company said that it expected the acquisition to be double-digit earnings per share accretive in the first full year after completion.

On London's junior market, Knights Group jumped 22%. The legal and professional services firm says it achieved a ‘robust’ financial year with a double-digit revenue rise.

For the year that ended April 30, the Newcastle, England-based firm posted a pretax profit of £1.1 million, down 80% from £5.5 million the year before. Revenue climbed by 22% to £125.6 million from £103.2 million.

However, almost all of that came from acquisitions, rather than organic growth.

Knights declared a total dividend of 3.50 pence per share, versus none the year before.

Looking ahead, Knights says the business is highly ‘resilient’ and it is confident in its medium-term outlook.

Airlines were enjoying a brighter day, with British Airways owner IAG crowning the FTSE 100 - advancing 6.5% - while Wizz Air and easyJet added 4.6% and 2.9%, respectively.

The turnaround came as US airline American Airlines reaffirmed its outlook for its second quarter sales despite the various problems facing the sector.

American it expects second-quarter revenue to have topped pre-pandemic levels, but fuel costs were higher than previously guided.

For the three months to the end of June, the Fort Worth, Texas-based airline said it flew 66.2 billion total available seat miles, down 8.5% versus the same period of 2019 and undershooting its guidance of down by around 7% to 8%.

However, second quarter revenue is seen 12% above 2019 levels. Second quarter total revenue per available seat mile is expected to be up 23%, beating guidance of up by between 20% and 22%.

American was 10% higher in New York.

In the US, the Dow Jones Industrial Average was up 0.5%, the S&P 500 up 0.3%, and the Nasdaq Composite 0.2% higher.

It was a lively day for the euro, which finally succumbed to the surging dollar and fell below the parity line for the first time since late 2002. The single currency did, however, stage a mini-fightback.

The euro was priced at $1.0068 at the London equities close on Tuesday, down from $1.0087 late Monday, but back above the $1 mark after falling to $0.9999 after 1030 BST.

The euro was struggling after a cut in Russian gas supplies to Europe heightened fears of a possible recession in the eurozone.

The pound quoted at $1.1906 on Tuesday evening, up from $1.1898 at the London equities close Monday. Against the yen, the dollar was quoted at JP¥136.66 in London, lower than JP¥137.31.

In the international economics calendar on Wednesday, there is Chinese exports and imports data overnight, followed by a GDP print in the UK at 0700 BST with industrial and manufacturing production. At the same time, there is a German consumer price index reading. The inflation data continues with French consumer prices at 0745 BST, followed by Spain at 0800 BST. There is eurozone industrial production at 1000 BST.

In the afternoon, there is US consumer price inflation at 1330 BST with a Bank of Canada rate decision at 1500 BST.

In the local corporate calendar, there is a trading statement from pub chain Wetherspoons, Tullow Oil and recruiter PageGroup.

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