Leading UK shares are heading for their fifth straight rise on growing optimism Greece can avoid a default, at least in the short term.
With the country's parliament successfully passing a second vote on the government's crucial austerity measures, investors are back on the bus marked risk. With Wall Street up 124 points following a better than expected Chicago purchasing managers' survey for June, the FTSE 100 is now up 77.02 points at 5932.97. To the excitement of chartists, the 6000 level is back in sight.
On Greece, Paolo Pizzoli of ING Bank said:
Now that the short term liquidity issue has been solved, all efforts will be put on the finalisation of the "private sector involvement" aspect of the new bailout package. With press reports hinting at progresses both on Banks' (and other institutional investors) commitment to maintain exposure to Greece and on that of a possible clearance from rating agencies that the options would not be considered an event of default, we might not be far from a conclusion, possibly by 11 July.
Banks are leading the way, both on the Greek situation and following confirmation from Lloyds Banking Group, up 4.02p at 48.675p, that it plans 15,000 job cuts. There's the cynical market for you. Royal Bank of Scotland is close behind, up 1.29p at 38.05p amid talk Mitsubishi Financial Group may buy its Australian infrastructure advisory business.
