16:57: The FTSE ends the day up 2.89 per cent at 5713.82.
Barclays and Royal Bank of Scotland finished the day up 17.6 per cent and 10 per cent, respectively, meaning both banks finished the day in the top five stocks in terms of growth.
In Europe, the Dax and Cac 40 finished the day up 5.4 per cent and 6.3 per cent, respectively.
15.33: US shares have joined in on the rise in markets after European leaders agreed a deal to tackle the debt crisis.
The Dow Jones has risen 2 per cent in early trades to stand at 12109.26.
The FTSE has risen 2.7 per cent to 5703.55, while the German Dax and the French Cac 40 have jumped at 5 and 5.3 per cent respectively.
13.50: The FTSE is up 3 per cent to stand at 5719.60, while the German Dax and the French Cac 40 have risen 5 and 5.6 per cent respectively.
Banks and mining firms continue to dominate the biggest gainers in the FTSE 100. Barclays and Royal Bank of Scotland have both risen by more than 15 per cent today, while Vedanta Resources is up over 10 per cent.
12.47: The FTSE 100 has risen 2.6 per cent since following the eurozone deal was announced last night.
At 12.47, the index was up 2.61 per cent, while European markets continued with the French Cac 40 and the German Dax up 5.3 and 4.5 per cent respectively.
11:36: The FTSE continues to rise since the markets opened this morning and is now up 2.4 per cent to 5687.70.
At 11.36, the Dax, Cac 40, were up 4.09 and 4.24 per cent, respectively.
10:31: FTSE still up after markets react to eurozone agreement last night.
At mid-morning, the blue-chip index is up 2.08 per cent to 5668.63. Barclays and Royal Bank of Scotland posted two of the top five share price gains, increasing by 9.3 per cent and 6.94 per cent, respectively.
9.40: The FTSE 100 and other European markets continue to rally on the back of the eurozone deal agreed last night.
At 9.40, the blue-chip was up 2.31 per cent to stand at 5681.73, while the French Cac 40 and the German Dax were up 3.9 and 3.7 per cent respectively.
8.25: Shares in Europe have risen rapidly in early trades after eurozone leaders agreed a deal which aims to solve the eurozone debt crisis.
At 8.25, the FTSE 100 had risen by over 2 per cent to stand at 5669.40, while in Europe, the French Cac 40 and the German Dax had risen by 3.5 and 3.7 per cent respectively.
The FTSE eurofirst has also jumped by 2.2 per cent.
The eurozone agreed a deal on expanding the bailout fund and banks taking losses on Greek debt in exchange for recapitalisation.
Markets also rose in Asia overnight on the back of the news. Japan’s Nikkei 225 was up over 2 per cent and the Hang Seng in Hong Kong up 2.5 per cent.
In the US, the Dow Jones ended the day up 1.4 per cent.
· Eurozone leaders last night agreed to reduce Greece’s debt to 120 per cent of GDP by the end of the decade, which is likely to force bondholders to accept their debt payments being halved.
· Banks in the region told they must raise their core tier one capital to 9 per cent.
· European leaders set out aims to boost eurozone’s main bail-out fund to €1tr.
· David Cameron tells Germany the European Central Bank should have a key role to play in guaranteeing the bail-out of the eurozone, according to a report in the Guardian.
· European Council president Herman Van Rompuy says the measures will “restore confidence and put Europe’s banking sector on a sound footing”.