FTSE rebound continues as Greece backs down on reforms

The FTSE 100 has risen 1.3% in morning trading as risk appetite continues to approve ahead of the pivotal Eurogroup summit on Greece this weekend.

The blue chip index was 80 points higher at 6,662 by midday, following on from yesterday's 1.4% bounce, as investors appeared to take heart from Greece's latest reform proposals. Prime minister Alexis Tsipras' latest proposals give ground on issues ranging from pension reform to VAT, suggesting Athens may be able to secure a new three-year bailout this weekend and stave off the collapse of its banking sector and an exit from the euro. With European equity markets also rallying, the newfound optimism was demonstrated by the fact there there were just two fallers in the FTSE 100 shortly...