Market overview: IAG and Alent lead gains

1630:Close The top flight index ended the day comfortably higher led by gains in IAG and Morrisons - with the latter a conspicuous gainer throughout the day. Shares from the oil patch provided a drag. Coca Cola HBC slipped despite the news out of Greece. Out on the second-tier index, Alent rocketed after dropping into the sights of US-based Platform Specialty Products. International Personal Finance provided an offset after warning profits at its Polish arm could be in danger following a surprise vote in Poland's lower parliament to cap all non-interest costs on consumer loans. To take note of, analysts' reactions to the agreement between Greece and its creditors was very guarded. FTSE 100 up 64.57 points to 6,737.95.

1537: On the subject of a restructuring of Greek debt, Alberto Gallo at RBS highlighted the fact that Monday’s deal only left the door open to the extension of maturities and not haircuts to the nominal value of the debt. Adding an extra 20 years EFSF/IMF loans would result in a 21% decrease in the net present value of those debts, he explains. “Is this sufficient to make Greek debt sustainable? The answer will depend on growth rates – but probably extensions alone would not be enough. Our view remains that a longer extension is needed or a partial conversion of debt into flexible bonds,” Gallo added.

1533: S&P retains Grexit as its base case scenario.

1528: Ten–year UK Gilt yields are higher by six basis points to 2.14% after having earlier hit a session high at 2.17%.

1404: Analysts at Citi moved back to a 'bullish' six-month stance from neutral on the metals&mining sector after the hammering it incurred over the past two weeks on FX moves, lower demand expectations and deflation concerns, the broker said on 10 July. Although macro risks persisted the equities have now overshot. Hence, they upped their recommendations on Glencore and Anglo American.

1341: IAG shares are pacing gains on the top flight index and attempting to move further above their 200-day moving average. An upgrade from UBS aside, the stock is benefiting from the positive news out of Greece and perhaps also Friday's anouncement from American Airlines that it would pare its growth plans, which triggered a rally in the wider sector.

1256: Speaking on Bloomberg TV Sir Howard Davies, Chairman of Phoenix group, says it would have been better if Greece had left the euro.

1255: Greece to extend bank holiday and capital controls.

1254: Reports indicate ECB has left ELA to Greek banks unchanged.

1125: In an interview with the FT the president of the Federal Reserve bank of Minneapolis Loretta Mester signalled she would support two increases in short-term rates this year.

1023: Traders are now expectant ahead of today's ECB decision on further ELA funding for Greece. Will it extend more funds? With what haircut? Additional funds may allow the country's lenders their doors even if only partially, providing a boost for the entire economy.

1022: Financial markets seem reasonably pleased with the Greek agreement, with the FTSE adding 0.5%, the Dax up some 1.34% and the Cac gaining 1.8%. "But", cautioned Brenda Kelly of London Capital Group, "we have been here before and we’re already off the highs." She added that nobody seems to have told the metals and mining sector of the FTSE that this is the case, as these shares are among the worst performing sectors this morning. "Gold prices were never elevated on the ongoing talks, even when Grexit seemed imminent but it continues to decline this morning and may well push lower. The March lows around the $1140/oz mark will need to hold otherwise a move towards the $1000 marker is a likely target," the analyst added. Fresnillo is on the bottom of the index, down 0.45% as is Randgold Resources, despite a broker upgrade from Numis.

0930: Shares in FTSE 250-listed Alent rocketed higher on news that US chemicals business Platform Specialty Products will buy the company for around $1.35bn in cash. The board of Alent intends to unanimously recommend the transaction to its shareholders, who will be entitled to 503p a share under the terms of the deal. Elsewhere, Nostrum Oil has made a further approach to Canadian listed Tethys Petroleum regarding a possible offer the entire company.

0905: Encouraging data from China,where exports grew by more than expected by economists in June, rebounding by 2.8% over the month - versus consensus of 1.0% - to reach a four-month high. This points to a policy-driven rebound in domestic demand, according to Julian Evans-Pritchard pf Capital Economics. "The underlying picture is that as some of the factors that weighed on external demand earlier this year, such as an unusually weak Q1 in the US, have faded, export growth has rebounded," the economist said.

0827: A very light day in terms of economic releases (Chinese data surprised positively) has been more than made up for by a surprise agreement in Brussels on a bail-out plan for Greece. That has sent European equity benchmarks higher by about a percentage point on average. The single currency is up by 0.37% to 1.1157. The yield on 10-year German bunds are now rising by four basis points to 0.94% and those on Gilts by another five to 2.13%. Front month Brent crude futures are down 2% to $57.54 per barrel on the ICE. IAG is the best performer now on the Footsie. FTSE 100 up by 49.42 points to 6,722.80.