UPDATE: Markets climb as EU leaders near Greek resolution

European markets have surged on reports eurozone leaders will back a 'selective default' on Greek debt.

The single currency bounced back to $1.434, up 0.89%, after morning losses which saw the euro falling to 1.414 against the dollar at 12pm. The main indices are also rebounding on the likelihood of a comprehensive deal on the Greek crisis, which would involve selective default as the key option. Eurozone leaders are set to kick off a crisis response that would involve a bond buyback and a debt swap but no new tax on banks, Reuters reports. The French Cac 40 surged by 1.98%, to trade at 3,828.95 points, followed by the German Dax that posted a leap by 1.26%, to trade at 7,312.46. ...