FTSE Rises on Greek Hope and Australian Cut

Leading shares have moved sharply higher on hopes that a solution to Greece’s financial troubles can be found, while mining groups have been boosted by an Australian interest rate cut.

BHP Billiton is 75.5p better at 1559.5p after the Reserve Bank of Australia reduced its cash rate by 25 basis points to a record low of 2.25%, to help lift its economy and keep a lid on the Australian dollar. A weaker currency benefits BHP in terms of its cost base in the country, and is also helpful to Rio Tinto, up 101p at £30.62.

Other miners are also stronger as copper and other metals moved higher despite continuing concerns about global demand, with Antofagasta up 33p at 705p and Anglo American 52.5p better at 1176.5p.

So the FTSE 100 has jumped 92.90 points to 6875.45, helped by proposals from the new Greek government to resolve its debt problems, showing a less confrontational stance than had been feared. Mike van Dulken, head of research at Accendo Markets, said:

The positive open comes from more accommodate central bank moves with the Royal Bank of Australia unexpectedly cutting rates to a record low while oil posted further rises and optimism rose regarding a Greek solution to its debt woes.

A jump in the crude price – Brent is up 3% at $56.43 a barrel – has lifted Tullow Oil by 15p to 414p and Royal Dutch Shell A shares by 73.5p to 2142.5p.

via The Guardian

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