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Footsie back on front foot as Tsipras blinks

Published: 14:00 01 Jul 2015 BST

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The London market was back on the front foot on Wednesday as Greece appeared to back down in its stand-off with creditors.

The FTSE 100 Index, which has fallen for four days in a row, built on early gains to stand 94.02 points ahead at 6615 in early afternoon trading.

The market rallied, breaking through the 6600 barrier, after it appeared that Greek premier Alexis Tsipras was preparing to accept creditors' demands tabled at the weekend.

But it is thought the Eurogroup of eurozone finance ministers may still find it tough to accept Tsipras' amended proposals, which reportedly included a slower ramp-up of the retirement age.

Commentators also questioned what would happen to Athens' plans for a referendum on the creditors' proposals if Tsipras appeared to accept them.

Connor Campbell at spread-betting firm Spreadex said: "It also leaves the question of what is actually happening with the referendum on Sunday up in the air."

The renewed optimism about Greece allowed traders to shrug off downbeat news about UK manufacturing, which faced its lowest growth in June since early 2013.

Howard Archer at IHS Global Insight said: "It reinforces the impression that UK manufacturers are being held back particularly by weak foreign orders."

On the UK company front, Serco (LON:SRP) bounced 9.8p to 127.8p as the troubled outsourcing group reported slightly better-than-expected first half trading.

After several profit warnings and a rescue rights issue, investors appeared to welcome some stability, with Serco saying its full year expectations remained unchanged.

Pub and brewing group Greene King (LON:GNK) frothed up 5.5p to 850.5p as it reported a record year despite lower underlying profits.

Road haulier Wincanton (LON:WIN) motored 2p to 184p after announcing a contract with bike and car accessory retailer Halfords to be sole operator of its national transport contract.

Sirius Minerals (LON:SXX) soared 9.3p to 24.6p as the UK potash miner said the North York Moors National Park Authority had approved its mine and mineral transport system planning application.

Plant hire group Speedy Hire (LON:SDY) tumbled 23.13p or 32.5% to 47.62p as it warned on profits and said its chief executive had quit.

News that a third party who subscribed for £145,000 of shares in Independent Oil & Gas (LON:IOG) last month had not yet paid for them hit the North Sea oil firm's stock by 4p to 16.75p.

Shares in LightwaveRF (LON:LWRF) dimmed 7p to 30p on news that the remote control lighting group expected short-term revenue to miss market expectations.

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