London open: Markets rise on last-minute deal to save Cyprus

Stocks advanced strongly on Monday morning after 11th-hour talks to save Cyprus from default resulted in a last-minute bailout deal with the Troika."Markets clearly appear to be more hopeful than they ought to be on the Eurozone muddling through this crisis - this would suggest that any potential flare-ups in the Eurozone crisis (Spain, Italy, Greece or Cyprus) will have the potential to send shockwaves to risk sentiment," said ETX Capital's Head of Trading Joe Rundle.Also supporting stocks this morning was speculation surrounding a parliamentary testimony tomorrow by the Bank of Japan's new Governor Haruhiko Kuroda on hopes that he will use this opportunity to outline new easing measures. Kuroda vowed last week to use "all means available" to end combat deflection and kick-start growth.Cyprus reaches deal to save small depositorsFollowing a meeting of Eurozone finance ministers that lasted almost 12 hours, Cyprus agreed to a €10bn aid package that doesn't include a controversial across-the-board bank-account tax but involves forcing big losses on uninsured depositors. The plan will see Cyprus wind down its largely state-owned Laika bank, the second-largest in the country, and move deposits below €100,000 to the Bank of Cyprus to create a 'good bank'. Deposits over €100,000 will be frozen and used to resolve Laiki's debts and recapitalise the Bank of Cyprus."The agreement reached today on Cyprus provides a comprehensive and credible plan to deal with the current economic challenges in the country," said International Monetary Fund (IMF) Managing Director Christine Lagarde."The plan focuses on dealing with the two problem banks and fully protecting insured deposits in all banks. It addresses upfront the core problem of the banking system through a clear strategy that ensures debt sustainability and does not excessively burden the Cypriot taxpayer. This agreement provides the basis for restoring trust in the banking system, which is key to supporting growth."Abderdeen leads financials higher early onFinancial stocks were making gains this morning on improved sentiment following the last-minute deal in Cyprus. Asset management firm Aberdeen was leading the way higher after posting a 10% increase in assets under management to £212.3bn in the second quarter.Sector peer Schroders was also higher after reaching an agreement on a recommended 135p-a-share offer for Cazenove Capital that values the investment business at £424m. Banking stocks RBS, Lloyds and Barclays were also higher early on.Drinks giant SABMiller rose on plans to target further beer volume growth and share gains in its Latin American division of the next three to five years. Biopharmaceutical business AstraZeneca was also higher after settling a US patent infringement litigation.Wood Group, the energy services firm, edged higher after being awarded a $45m extension on a maintenance contract from Caltex in Australia.FTSE 100 - RisersAberdeen Asset Management (ADN) 435.20p +6.41%Schroders (SDR) 2,153.00p +2.87%Rolls-Royce Holdings (RR.) 1,123.00p +2.37%Vodafone Group (VOD) 187.70p +2.32%Royal Bank of Scotland Group (RBS) 299.20p +2.01%Barclays (BARC) 297.75p +1.97%ARM Holdings (ARM) 894.50p +1.76%easyJet (EZJ) 1,047.00p +1.55%TUI Travel (TT.) 315.70p +1.51%Hargreaves Lansdown (HL.) 882.00p +1.50%FTSE 100 - FallersEurasian Natural Resources Corp. (ENRC) 275.50p -3.44%United Utilities Group (UU.) 699.00p -1.41%Kingfisher (KGF) 286.00p -0.52%Severn Trent (SVT) 1,677.00p -0.36%Randgold Resources Ltd. (RRS) 5,615.00p -0.35%Antofagasta (ANTO) 1,030.00p -0.29%Imperial Tobacco Group (IMT) 2,289.00p -0.09%Whitbread (WTB) 2,515.00p -0.08%British American Tobacco (BATS) 3,485.50p -0.07%Intertek Group (ITRK) 3,364.00p -0.03%FTSE 250 - RisersThomas Cook Group (TCG) 119.60p +7.07%Kentz Corporation Ltd. (KENZ) 429.50p +3.57%888 Holdings (888) 165.80p +3.05%SIG (SHI) 165.70p +2.66%EnQuest (ENQ) 140.90p +2.62%Ferrexpo (FXPO) 174.60p +2.28%Ashtead Group (AHT) 585.50p +2.18%Ladbrokes (LAD) 223.80p +2.10%Amlin (AML) 432.60p +2.10%Phoenix Group Holdings (DI) (PHNX) 663.00p +2.08%FTSE 250 - FallersDrax Group (DRX) 605.50p -3.43%NMC Health (NMC) 335.00p -1.73%Daejan Holdings (DJAN) 3,597.00p -1.59%PZ Cussons (PZC) 404.90p -1.53%Dialight (DIA) 1,329.00p -1.19%United Drug (UDG) 265.00p -0.97%Diploma (DPLM) 575.00p -0.95%Bumi (BUMI) 302.50p -0.95%Berendsen (BRSN) 756.00p -0.92%COLT Group SA (COLT) 130.40p -0.91%BC