FTSE hits fresh 2012 high despite Greek debt stand-off

UK markets were firmer today, reaching new highs for 2012 as investors went to risk-on mode, despite the threat of a stand-off between Greece and its bondholders.

As the crisis in Athens rumbles on, equity markets were undeterred, with the FTSE 100 hitting a fresh peak for 2012 during trading.

By 13:29pm, shares were up 0.8% or 45.79 points, at 5,774.34 points, having hit a peak of 5,778 earlier.

If the index closes up at its current level it will have set a new high for 2012, surpassing last week's peak close of 5,741.

The gains come as negotiations over the debt restructuring in Greece continue. They are now thought to centre on a loss of 65-70% of the value of current Greek bonds, according to Reuters.

But details of the interest rate levied on new long-term bonds issued as part of a debt swap have yet to be finalised.

Institute of International Finance chief executive Charles Dallara, negotiating on behalf of banks and insurers holding Greek debt, said the talks were at a "crossroads", suggesting the voluntary deal would be in jeopardy if the IMF pushed for further concessions on new debt.

Other European indices also shrugged off the risk of a stand-off, with the German Dax and French Cac 40 both higher.

The Dax was ahead 29.89 points, at 6,434.28, while the Cac 40 gained 17.43 points, to 3,338.93.