Thanks for joining us. We start with official figures showing that inflation rose last month for the first time since February last year.
The Office for National Statistics said the consumer price index rose by 2.2 percent in July, compared with 2 percent in both May and June.
5 things to start your day with
1) Record number of children on disability benefits after increase in autism and ADHD | Concerns over rising bills as parents of more than 730,000 children under 18 claim tax-free allowance
2) Britain takes European media crown after Taylor Swift extravaganza | The impact of the Eras tours and the revival of cinema releases will improve the UK's position
3) BP to help NASA set up base on moon | The deal comes amid growing concerns about potential Chinese dominance in space
4) Lawyer disciplined for showing sexual photo to colleague in court | Tribunal says inappropriate conduct damages public confidence in legal profession
5) Jeremy Warner: Lazy Britain is becoming a fertile ground for violence, resentment and crime | The summer riots show how persistent unemployment only increases the risk of civil unrest
What happened at night
Asian stocks were mixed as Japan's benchmark lost steam after news that the prime minister will not seek re-election as leader of the ruling party.
Japan's benchmark Nikkei 225 fell 0.1% to 36,192.93. Australia's S&P/ASX 200 rose 0.5% to 7,869.40. South Korea's Kospi rose 0.7% to 2,640.10.
Hong Kong's Hang Seng fell 0.3 percent to 17,127.65, while the Shanghai Composite lost 0.4 percent to 2,857.90.
According to Japanese media polls, public opinion of Prime Minister Fumio Kishida has been declining recently due to a scandal involving dirty money and his general unpopularity with voters.
Japan's ruling Liberal Democratic Party has a majority in the lower house of parliament, which elects the country's leader.
In the U.S., stocks rose and bond yields fell on Tuesday after data showed U.S. producer prices rose less than expected in July, reinforcing market expectations that cooling inflation will allow the Federal Reserve to cut interest rates soon.
The S&P 500 rose 1.7% to 5,434, the Dow Jones Industrial Average rose 1% to 39,766 and the Nasdaq Composite climbed 2.4% to close at 17,188.
Yields on the US 10-year Treasury note fell to 3.85% from 3.90% on Monday evening.