The Dow ended its daily winning streak at six on Tuesday as a decline in tech and industrial shares, as well as ongoing trade tensions, weighed on sentiment.
The market spotlight in the middle of the week will shift to inflation on both sides of the Pacific, with consumer price data for the month of May due out in China and the US.
Stock markets across the Continent saw big gains on the back of hopes for further economic stimulus in China, which offset the ongoing strain on markets from US-China trade war.
London stocks edged higher on Tuesday, with miners pacing gains on reports of further fiscal stimulus being planned in China and despite sterling moving a touch higher following upbeat UK labour data for April.
3i Group general counsel and company secretary Kevin Dunn disposed of 33,508 ordinary shares in the FTSE 100 private equity and venture capital company on Monday.
UBS has upped its price target on Tesco, arguing that the supermarket chain is “fundamentally stronger" and that the market's ongoing scepticism is misplaced.
London's FTSE 250 was 0. 12% higher at 19,332. 81 in afternoon trading on Tuesday, as Woodford Patient Capital Trust, the listed fund run by Neil Woodford, led the index higher.
Wall Street trading again began on a positive note on Tuesday, with the Dow looking to extend its winning streak out to seven days despite Donald Trump threatening to slap more tariffs on China if President Xi Jinping refused to meet him at this month's G-20 meeting in Japan.
Analysts at Liberum slashed their target price on menswear retailer Ted Baker to 1,280p from 2,300p previously after the group issued a profit warning a day earlier.
The PSOE party in Spain agreed on Tuesday to cooperate on forming a government with far-left party Podemos in its latest move to secure a majority in parliament.
Sabien Technology said on Tuesday that it has won a £78,475 contract with a "leading" UK energy group and that it looks set to swing to a small annual profit.
Dewhurst reported a jump in profits on Tuesday after an encouraging first half performance in "almost all areas", though the company warned that Brexit uncertainty has clouded the outlook.
Stock markets across the Continent are rising sharply with hopes for further economic stimulus in China helping to offset the chilling effect from the ongoing US-China trade stand-off.
London's FTSE 100 was up 0. 4% at 7,401. 68 in afternoon trade on Tuesday as investors mulled the latest UK jobs data.
Infrastructure and support services group Stobart said former chief executive Andrew Tinkler has lost his appeal against the High Court defeat over his dismissal.
Ted Baker issued a profits warning on Tuesday as the iconic retailer said it faced "extremely difficult trading conditions".
Budget carrier Ryanair is to launch a Malta-based airline as it seeks to ramp up its presence on the island and expand routes.
UK phone firms have urged the government to clarify its position over Huawei, warning that Britain's world leading position in mobile connectivity could be at stake.
US wholesale prices rose by a tad less than forecast in May, weighed down by declines in energy prices, and slowing inflation for manufactured goods out of Asia.
The European Commission blocked a proposed merger between India’s Tata Steel and Germany’s ThyssenKrupp.