FTSE 100 Rallies with Bitcoin, US-Iran Tensions Weigh

British stocks continued their upward trend on Tuesday as Bitcoin rallied to three-month highs, indicating a broader risk appetite in investors.

The FTSE 100 index rose 0.30%, adding to its earlier gain, while Germany's DAX advanced 0.7% and France's CAC 40 fell 0.2%. The euro also edged up 0.1% at $1.3638.

Jean Shepherd's economic isolation plan targeting exchange houses in Dubai, Hong Kong, Singapore, and the UAE had a limited market impact as it lacked specifics, Jefferies' Mohit Kumar said. He noted that sanctions do not come into force immediately and are being used as a negotiating lever rather than an escalation.

Kumar remains constructive on risk assets given ample sidelined cash and light equity positioning, favoring weaker-dollar and commodity-linked trades.