UK shares hit highest level since summer

The FTSE 100 soared to its highest level since early August in morning trading, as investors remained hopeful of a resolution in Europe.

As holders of Greek debt across Europe put forward plans to take a 40% haircut on their bonds, markets climbed sharply, with optimism growing that a major step to solving the European crisis is nearly completed. Shares across Europe were up in reaction, with the FTSE 100 up 31.4 points, or 0.6%, to 5,520 in early trading. By 10:38am the index had lost some ground, up 24 points, at 5,512. The move higher leaves the blue chip index at its highest level since 3 August, when it closed at 5,590 points. Elsewhere, in Germany the Dax was up 1%, putting on 57.6 points to 6,028, while th...