Cyprus bailout deal boosts markets


European markets were up by as much as 1% after a bailout deal for Cyprus prevented the country from crashing out of the eurozone.

The last-ditch agreement, which will see Cyprus get 10 billion euro (£8.5 billion) to shore up its banking system, triggered gains for Asian markets and resulted in major progress for the Dax in Frankfurt and the Cac 40 in Paris.

The improvement of the London market was more modest, but the FTSE 100 Index still recovered from a run of recent losses to climb 40.9 points to 6433.6.

Vodafone was one of the session's biggest risers amid further speculation over its exit from America in one of the largest corporate transactions of all time.

The Sunday Times reported that the mobile phone company is leaning towards making a clean break from Verizon Wireless, in which it holds a 45% stake. This could realise as much as 135 billion US dollars (£88 billion), although it is still far from certain that chief executive Vittorio Colao will press the button on a deal.

Shares rose 4.3p to 187.75p, a gain of 2%.

Outside the top flight, Thomas Cook shares jumped 7% after JP Morgan Cazenove backed the restructuring being carried out by chief executive Harriet Green, increasing its price target on the stock to 140p from 30p. Shares were 7.55p higher at 119.25p.

The five worst financial crises of our time

The five worst financial crises of our time