London open: FTSE 100 inches up on growing optimism over Greek deal

The Greek government is now expected to present its reforms in the next days after wrangling with EU leaders who will then decide on their viability.

At 0910 GMT, the London's market of 100 top blue-chip stocks rose 0.2% or 12 points at 6974, trading up near its all time highs.

Augustin Eden at Accendo Markets questioned whether there is potential for the index to test the 7000 level before the weekend. "Resistance-turned-support possible around 6980. Bulls looking for a final surge past 7000 while bears will look to another sell off before the weekend," said Eden.

A decidedly dovish Federal Reserve meeting on Wednesday together with comments by the Bank of England's chief economist over possible upcoming rate cuts injected a degree of confidence in the UK market.

Low interest rates tend to be favourable for risk assets like equities and less so for bonds. Early Friday, the UK 10-year Gilt was down 0.1% at 120.94 ticks as market participants added exposure to equities.

Meanwhile in the currency world, sterling lost steam against the US dollar on the latest comments by the BOE's chief economist, off 0.1% to change hands $1.474.

In a day of no major economic data out of the UK, the attention was on corporate news. TSB Banking Group's shares rose 1.8% after Spain's Banco de Sabadell approved the purchase of the British bank at 340p per share with major shareholder Lloyds Banking Group accepting the offer as expected.

Meanwhile, real estate giant British Land exchanged £733m worth of joint venture properties with supermarket titan Tesco and pharma group Glaxosmithkline and Italian pharma group MolMed signed a strategic collaboration agreement in gene therapy.

Housebuilder Berkeley Group reiterated its earnings guidance for the next three years to 2017 as management demonstrated their confidence in the UK housing market recovery.

Royal Dutch Shell has sold off a portion of its upstream assets in Nigeria for $737m cash to local operator Eroton Exploration & Production.

Elsewhere, shares in Gulfsands Petroleum slumped 16% to trade at 2195p after the oil and gas producer warned on finances, saying it needs $15m in new capital to fund its planned operational activities over the next 12 months.

Market Movers
techMARK 3,263.98 +0.29%
FTSE 100 6,973.73 +0.16%
FTSE 250 17,451.61 +0.08%

FTSE 100 - Risers
CRH (CRH) 1,821.00p +4.00%
Tullow Oil (TLW) 321.10p +3.71%
Sports Direct International (SPD) 661.50p +1.93%
Shire Plc (SHP) 5,705.00p +1.24%
AstraZeneca (AZN) 4,835.00p +1.03%
Sky (SKY) 1,037.00p +0.97%
Smith & Nephew (SN.) 1,162.00p +0.96%
International Consolidated Airlines Group SA (CDI) (IAG) 586.50p +0.95%
Sage Group (SGE) 485.10p +0.83%
Ashtead Group (AHT) 1,142.00p +0.79%

FTSE 100 - Fallers
Persimmon (PSN) 1,685.00p -5.23%
Anglo American (AAL) 1,030.00p -1.53%
Kingfisher (KGF) 369.40p -1.34%
Mondi (MNDI) 1,329.00p -1.26%
Glencore (GLEN) 283.35p -0.84%
Fresnillo (FRES) 673.50p -0.81%
SABMiller (SAB) 3,663.50p -0.79%
Next (NXT) 7,260.00p -0.75%
Imperial Tobacco Group (IMT) 3,133.00p -0.70%
Randgold Resources Ltd. (RRS) 4,795.00p -0.64%

FTSE 250 - Risers
Michael Page International (MPI) 549.50p +3.78%
Afren (AFR) 3.40p +2.72%
Ophir Energy (OPHR) 132.60p +2.55%
Serco Group (SRP) 174.30p +2.17%
Ted Baker (TED) 2,800.00p +1.97%
Homeserve (HSV) 359.20p +1.90%
TSB Banking Group (TSB) 333.10p +1.87%
COLT Group SA (COLT) 141.40p +1.73%
AL Noor Hospitals Group (ANH) 1,021.00p +1.69%
Just Retirement Group (JRG) 163.60p +1.68%

FTSE 250 - Fallers
Vedanta Resources (VED) 435.50p -3.59%
Acacia Mining (ACA) 243.20p -1.94%
Centamin (DI) (CEY) 52.70p -1.86%
Debenhams (DEB) 78.80p -1.81%
Tate & Lyle (TATE) 601.00p -1.80%
Riverstone Energy Limited (RSE) 1,022.00p -1.73%
Lonmin (LMI) 123.80p -1.51%
Enterprise Inns (ETI) 100.60p -1.47%
Hikma Pharmaceuticals (HIK) 2,231.00p -1.37%
National Express Group (NEX) 281.20p -1.33%