U.K. stocks slipped from record highs on Tuesday, as the pound ignored worse-than-expected British manufacturing data and rallied against the dollar. The FTSE 100 index UKX, -0.52% fell 0.5% to close at 7,648.10, easing back from the all-time closing high scored on Friday, the last trading session of 2017. The London benchmark logged a 7.6% gain for the full year, for its second straight year of advances.

U.S. stocks kicked off 2018 on a positive note Tuesday, with major indexes rallying to record levels in a broad rally that saw five of the 11 primary sectors gaining more than 1% on the day. The energy sector was a particular outperformer, jumping 1.8%, while both consumer discretionary and material names were up 1.5%.

Asian equities extended gains after a rally in technology companies boosted U.S. stocks to record highs. Bonds fell in Australia and New Zealand following a drop in Treasuries, while crude oil held above $60 a barrel in New York.