Greek deal puts FTSE at record high

Wednesday 25 February 2015

London's FTSE 100 Index is to open at a record high this morning after investor confidence was boosted by an agreement to extend Greece's bail-out terms.

The breakthrough came after European creditors approved the list of reform measures being proposed by Athens as a requirement of the country's four-month extension to its debt arrangements. A rise in the price of Brent crude oil on Tuesday to about 60 dollars was another factor in pushing the FTSE 100 Index above the 6,950 intra-day record set during the dot.com boom at the end of 1999.

The London market has trailed behind Wall Street in reaching a new record high, despite being in sight of the threshold for much of the last year.

Global markets were also lifted by comments from Federal Reserve chair Janet Yellen after she told US politicians that the country's economy is making steady progress.

But she added that the Fed will not be rushed into raising interest rates as unemployment is still too high and wage growth remains sluggish.

Mining stocks were the driving force behind London's record-breaking session, with mining giant BHP Billiton up 7% after better-than-expected results.

The FTSE 100 Index finished the landmark session 37.5 points higher at 6949.6, above its previous record close of 6930 on 30 December 1999.