The FTSE 100 is down 27 points, or 0.46%, to 5,870.9, this morning as energy shares continued their drop from yesterday afternoon.
British Energy is leading the fall with a drop of 2.66% to 731.5p after news it may miss its full-year target for electricity output, while Scottish & Southern Energy is also trading lower, slipping 1.76% to 1,225p.
BP has also slipped slightly, dropping 0.49% to 611.5p, after shareholders filed a lawsuit against its top executives, accusing them of letting down investors by failing to repair a pipeline that forced the closure of part of its Alaskan Prudhoe Bay oilfield.
Elsewhere sugar and sweeteners group Tate & Lyle has been boosted by a target price upgrade from Citigroup, adding 1.66% to 703.5p to top the leaderboard, while Reuters is contionuing to perform well with a rise of 1.29% to 393.5p.
Mining stocks are also helping to limit losses, with Rio Tinto up 1.6% to 2,738p, while Vedanta is up 1.5% to 1,287p and BHP Biliton has seen increases of 1.11% to 1,000p.
In Japan the Nikkei 225 Stock Average ended the day up 255.17, or 1.6%, to 16,071.36, to close at the highest point since 19 May, with exporters leading the advance after a mild inflation report from the US.
Toyota, the world's largest carmaker by value, advanced 150 yen, or 2.4% to 6,420, while Canon, the world's No. 1 maker of copiers, jumped 110 yen, or 2%, to 5,650, and Komatsu, the world's second-largest maker of construction machinery, rose 40 yen, or 1.9%, to 2,180.
Consumer lenders also rose for a second day after reports the government may exempt some small loans from a planned cap on interest rates. Orix, Japan's largest non-bank financial company, jumped 1,460 yen, or 4.9%, to 31,200, while Promise, the nation's third-biggest consumer lender, surged 7.2%, to 5,800, and Aiful, the largest, climbed 3.9%, to 5,100.
And semiconductor-related shares gained after Applied Materials. said profit increased 39%. Advantest rose 190 yen, or 1.7%, to 11,190, while Kyocera, the world's biggest maker of ceramic packaging for chips, climbed 200 yen, or 2.1%, to 9,870, and Hitachi, surged 27 yen, or 3.8%, to 736.
Elsewhere Sony, the world's second-biggest consumer electronics maker, dropped 60 yen, or 1.2%, to 5,150, as a recall by Dell of 4.1 million laptop batteries made by Sony that may burst into flames, might cost the companies as much as $400m.
In the US the Dow Jones Industrial Average rallied on Tuesday with gains of 1.19% to 11,230.26, as weaker-than-expected producer prices raised hopes the Federal Reserve may keep interest rates unchanged in the short term.
Financial stocks performed well, with JPMorgan Chase gaining 2.6%, or $1.15, to $45.04, while Citigroup added 1.5%, or $0.69, to $48.41 and Bank of America climbed 2%, or $1.02, to $52.15.
Shares of Dell shot up 4%, or $0.84, to $22.08 after the world's largest personal computer maker said it does not expect the recall of 4.1 million notebook computer batteries will impact its business.
Meanwhile Home Depot climbed 3.6%, or $1.18, to $34.44 after reporting profits which beat estimates, while shares of TJX Cos. rose 1.7%, or $0.45, to $26.87 after it posted its best-ever second-quarter profit, to underpin the rise in retailers' shares.
But on the downside, shares of Wal-Mart Stores slipped 1%, or $0.45, to close at $44.55 after the world's largest retailer reported lower quarterly profit because of a charge for selling its German stores to a rival, although it maintained its profit forecast for the full year.IFAonline
Partner Insight Video: Advisers have had to adapt to the changing investment landscape.
Investment trust savings scheme