Banks push FTSE 100 higher as Greek debt deal done

Britain's top equity index hit a two-week high on Monday, with banks among the best performers, after euro zone leaders agreed on a roadmap to a potential third bailout for near-bankrupt Greece.

The blue-chip FTSE 100 index was up 0.8 per cent at 6,724.71 points by 1135 GMT, with advances in banks - highly geared to market declines - adding the most points to the index.

"I was 'long' on the market last week, betting that a Greek deal would be reached, and the agreement on Greece has had a natural, positive kick-on effect for the banks," Central Markets trading analyst Joe Neighbour said.

"For Greece, the 86bn package will allow it to meet its financial commitments for the next three years.

But the conditions are extremely tough," Pictet Wealth Management chief strategist, Christophe Donay, wrote in a note.

Among standout gainers, British Airways' owner International Consolidated Airlines Group (IAG) rose 1.9 percent after UBS upgraded the stock to "buy" from "neutral". Among mid caps, specialty chemical maker Alent soared 45 per cent to a record high after a bid from US peer Platform Specialty, pushing the FTSE 350 Chemicals Index 2.6 percent higher.

On the downside, International Personal Finance plummeted nearly 15 per cent to a 16-month low on proposed revisions to a credit amendment law in Poland, one of its biggest markets.

The FTSE 100 is up by about 2 per cent since the start of 2015, although the index is down 6 per cent from a record high of 7,122.74 points reached in April. 

(Additional reporting by Sudip Kar-Gupta)

Image: Traders on the floor of the New York Stock Exchange.

Photograph: Brendan Mcdermid/Reuters