The FTSE 100 was higher on Wednesday despite mounting tension in Eastern Europe where a stray missile of unknown origin struck NATO member Poland.
Given Russia had launched missile attacks in neighbouring Ukraine yesterday it was inevitable that fingers would be pointed in their direction though there is still considerable uncertainty over what exactly happened and how.
AJ Bell investment director Russ Mould said: “Defence firm BAE Systems was among the top FTSE 100 risers as investors chewed over a possible escalation of the conflict. Index heavyweights BP and Shell were also higher as oil prices rose on the latest developments.
“The divergence in the inflationary pressures facing the US and UK were brought into focus by the latest figures on this side of the Atlantic which were materially higher than anticipated.
“This reflects the much greater energy independence of the US relative to the UK, with rising gas and electricity bills a significant contributing factor in the surge in UK prices.”