FTSE 100 enjoys gains as Greek deal leads shares higher

Otmane El Rhazi from Mindful Money » Shares.

The FTSE 100 closed 1% up on Monday following the news that Greece had managed to seal a deal with its creditors.

London’s blue-chip index finished the day’s session, 64.57 points ahead at 6,737.95.

The gains were echoed in France and Germany too.

In the UK, British Airways owner, International Consolidated Airlines, as well as supermarket Morrisons and B&Q parent Kingfisher led the top flight higher.

Following a marathon negotiations, news emerged on Monday that eurozone finance ministers had finally come to a unanimous agreement over a third bailout package for Greece.

European Union chairman Donald Tusk said that leaders have agreed “in principle” on the bailout, adding that this “means continued support for Greece”, according to the BBC.

European Commission head Jean-Claude Juncker, confirmed that there will be no so-called ‘Grexit’ from the eurozone currency bloc.

Greece now has until this Wednesday to pass the reforms put forward by its creditors. Parliaments across a number of eurozone states would have to agree to any new bailout terms.

Prime Minister Alexis Tsipras asserted that Greece had fought a “tough battle”, won debt restructuring, and sent a message of dignity to all of Europe.

He said: “The deal is difficult but we averted the pursuit to move state assets abroad. We averted the plan for a financial strangulation and for the collapse of the banking system.”