European bond markets extended losses on Tuesday as oil prices continued their upward trajectory, weighing on investor sentiment. The FTSE 100 index showed modest declines, tracking broader risk-off moves across the region. Yields on German bunds rose, reflecting reduced demand for safe-haven assets.

Energy stocks gained modestly as crude benchmarks strengthened. Market participants are closely monitoring inflation data and central bank guidance for clues on future policy direction. The commodity-driven nature of the UK index makes it particularly sensitive to energy price swings.

Trading volumes remained light ahead of key economic calendars. Analysts suggest the correlation between bond yields and oil prices may persist if inflation concerns resurface.