The FTSE 100 raced to its highest level in seven months this morning as mounting optimism over a successful Greek deal lifted sentiment.
The FTSE 100 climbed 45.7 points or 0.8%, to 5,951 by mid morning as investors welcomed comments from Germany about the likelihood of a deal being completed.
According to reports, the German finance ministry said it is 'increasingly optimistic' that a Greek deal will be completed by tonight. An official statement is expected this evening.
With such positive comments coming from Germany, the key player in any rescue deal for Greece, European shares were also firmer.
The German Dax was ahead 1.4% at 6,944 points, while the French Cac 40 was up 0.8% to 3,468.
Investors were also buoyed by the latest move from the Chinese authorities, after the reserve requirement for banks was cut for the second time in four months.
The cut should help boost liquidity in markets, by freeing up the amount of money banks can lend out.
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