FTSE bounces as Greece 'backs down' over bailout deal

The FTSE 100 has made back some of its heavy June losses after a leaked report suggested Greece is ready to back down in negotiations with its creditors.

The index opened up 45 points at 6,564 - following on from a month in which it shed some 6.6% - then extended that rally on reports that Greek prime minister Alexis Tsipras had dropped the majority of his demands. The FTSE 100 then jumped as much as 1.7% by mid-morning after the Financial Times obtained a leaked copy of Tsipras' latest proposals. Details showing Tsipras had backed down on most conditions relating to VAT, pension reform, and upfront debt relief raised investors' hopes that Sunday's referendum will now be cancelled and a third bailout deal agreed. Those hopes were te...