London shares jump after EU deal on Greek debt

Share prices jumped in early London trade on Friday after Europe reached a deal to avoid a Greek debt default. London's benchmark FTSE 100 index climbed 78.01 points or 1.38% to at 5,752.39 at 8:29 am. Greece, the EU and the IMF agreed early Friday on the final details of a 28 billion euros ($40 billion) savings plan that Athens needs to implement over the next five years in order to obtain cash to pay off its immediate debts. The European Commission said the deal among international backers on the ground in Athens now has to be "translated into concrete legislative measures" by Greece. However, investors are still nervous as they wait to see if Prime Minister George Papandreou can get his austerity measures though parliament next week. But energy stocks were weak after the International Energy Authority's decision to release 60 million barrels of oil from emergency reserves, dealers said. The agency said it made the move to make up for lost output in Libya and to give the global economy relief from high energy prices. It is only the third time the Paris-based group has taken such a step. On the London market, natural resources stocks were the biggest gainers, with Antofagasta gaining 3.07% to 1,275 pence, Randgold adding 2.77% to 5,015 pence, Xstrata rising 2.73% to 1,277.50 pence and Kazakhmys up 2.72% to 1,285 pence. Satellite communications operator Inmarsat was the only FTSE-100 faller, shedding 0.79% to 562.50 pence.