Global equity markets faced severe turbulence as US Treasury yields surged to 2007 highs and Brent crude oil breached $100 a barrel amid Middle East tensions.

The FTSE 100 closed 29 points higher despite global concerns over surging energy prices and disappointing earnings from major US technology firms. Strong performances from UK engineering and medical companies helped the index buck the negative international trend.

London equity markets remain cautious as investors balance modest economic growth against geopolitical instability. High-profile merger and acquisition activity is currently the primary driver of index performance.