European markets start the week on the up

European markets returned to the black this morning as the absence of further bad news over the weekend persuaded investors to look for bargains after last week’s rout.

Britain’s FTSE 100 Index, which lost more than 5 per cent last week, was around 30 points higher at 9.45am. The leading share indices in France and Germany were also up.

New polls suggesting that Greek voters may choose to back parties that will honour their recent bail-out deal with Europe helped sentiment by reminding traders that a eurozone collapse was not a certainty.

Simon Denham, chief executive of Capital Spreads, said that with a relatively quiet week for economic releases, the markets were likely to focus on international summits and the troubles of the eurozone.

However, he said inflation and retail sales figures, minutes of the Bank of England’s last policy meeting and a revised reading for economic growth all had the potential to affect British shares.