Greece deal triggers European markets rise to six week high but sterling strengthens against euro
The FTSE 100 closed 0.63 per cent up at 6,796.45 points on the first day of trading following Greece's securing of a much-needed bailout loan.
Read more: Europe offers bailout to Greece as ECB raises bank support
European shares climbed to a six-week high, with the pan-European FTSEurofirst 300 index up 1.36 per cent to 1,608.12. In the US, the Dow Jones was also up 0.16 per cent in mid-morning trading, while the S&P 500 rose 0.59 per cent.
Investors' nerves about the possibility of a Greek exit from the eurozone appeared to be quelled after Eurogroup finance ministers confirmed it would begin negotiations to grant the financially crippled country a three-year bailout loan.
European Central Bank chief Mario Draghi also approved the amount of emergency liquidity assistance made available to Greek banks by €900m after Greece's parliament agreed to vote in favour of austerity measures outlined by its creditors. According to Reuters, Greek banks are set to re-open on Monday.
However, the euro was down 0.53 per cent against the dollar at around $1.09, potentially triggered by some traders having waited for a more stable situation before selling unwanted euros.
Sterling rose to its strongest level in seven and a half years against the euro to €1.4315.