FTSE rises on Greece and China news

The FTSE 100 has risen in early trades on the back of news of a new bailout plan for Greece and China’s decision to cut bank reserve requirements.

At 10.34, the blue-chip index was up by 0.7 per cent to stand at 5945.12, while the French Cac 40 and the German Dax were up 0.8 and 1 per cent respectively.

European stock markets were higher before a meeting of eurozone finance ministers that many hope will finalise a new bailout for Greece. Greece needs the £110bn bailout by mid-March to avoid defaulting on its debts.

Wolseley, Rio Tinto and BHP Billiton made the largest gains in the FTSE 100 with the trio rising by around 3 per cent.

Markets were also bolstered by China’s decision to cut banks’ reserve requirements to spur growth. The cut, which is the second made in the past three months, will see reserve requirements fall by 50 basis points from February 24, 2012.