Britain’s leading shares index jumped higher in early deals on Monday, led by risk-sensitive banks and commodity stocks as investors welcomed the result of Sunday’s re-run Greek election.
A narrow victory by pro-bailout parties in Greece over radical leftists eased concerns the debt-laden country could leave the euro zone, although commentators were still cautious on how long the relief would last.
“The election outcome is probably the best that could be hoped for by investors under the given circumstances. Equity markets and the euro exchange rate should react positively. However, we find it highly likely that uncertainties around Greece will keep markets volatile over the coming months,” UBS economist Martin Lueck said in a note.
