Thursday 27 October 2011

Eurozone deal boosts markets as confidence starts to return

Confidence has returned to the markets as shares rose after European leaders agreed a deal with regard to the debt crisis. The eurozone agreed to expand the bailout fund and banks have accepted a 50% loss on Greek debt in exchange for recapitalisation.

Leaders from all 27 European Union countries cut a deal to help solve Greek debts. Last night the FTSE 100 closed 27.7 points up at 5553.2, with other markets seeing positive surges similarly.

Chancellor George Osbourne told Radio 4's Today programme said that the deal was important: "It is going to be a tough road ahead but they are on the right road and it is massively in the British national interest that they sort these problems out, because the instability in the eurozone is having a chilling effect on the British economy."