FTSE in the black as Greek rescue plans calm nerves

Support measures to head off a potential sovereign default are on the agenda for EU meetings this week, while austerity policies announced by the Greek government also went some way to soothing market fears.

European governments have agreed in principle to support Greece and are considering various options, including bilateral aid, a senior German coalition source said.

"The decision on help for Greece has been taken in principle within the euro zone," the source added.

The comments were the first clear sign that European economic heavyweight Germany may be ready to step in to stave off a crisis of confidence in the 16-nation currency bloc that has roiled markets around the globe.

The FTSE 100 Index eventually added 19.51 points to 5111.84 as Wall Street's Dow Jones Industrial Average climbed back above the 10,000 mark after closing at its lowest level since November on Monday night.

Worries over a Greek default – and its wider impact on the financial system – sent the euro plunging against the dollar on Monday, although it staged a modest recovery yesterday.

The pound slid below 1.14 against the single currency and reached a new eight-month low against the dollar of 1.55 before bouncing back.

There was little in the way of corporate news to deflect attention away from the ongoing economic worries.

Thomson owner TUI Travel edged 1/8p higher to 258p after it reported a 9 per cent rise in average selling prices and predicted that it may be over the worst in terms of market conditions.

TUI posted a wider first quarter loss but said there had been a significant improvement in profitability in the current quarter.

Rival Thomas Cook, which is due to post a trading update tomorrow, added 33/4p to 2291/4p.

Property firms featured on the Footsie risers' board after a well received third-quarter update from British Land, which added 81/4p to 4461/4p.

The company revealed an 8.2 per cent rise in property values in the quarter and said footfall in its retail parks and Meadowhall shopping centre near Sheffield rose by more than the national average at 5 per cent.

Land Securities followed suit, with a 121/2p rise to 6341/2p, or nearly 3 per cent, while Segro cheered 15/8p to 3021/4p.

Miners maintained their strong start to the week after Monday's upbeat fourth quarter figures from Xstrata and Randgold Resources, which said it had been boosted by gold prices soaring to record levels.

Xstrata rose another 443/4p to 10281/2p – topping the Footsie risers' board – while hopes of consolidation in the sector also bubbled away.

Rio Tinto cheered 1141/2p to 3180p, but Randgold Resources edged lower with a modest drop of 17p to 4463p after Monday's strong gains.

One of the biggest gains in the FTSE 250 Index was posted by property website Rightmove after it raised profit expectations for 2010 and said it achieved a substantial increase in average spend per advertiser. Shares jumped 40p to 565p, a gain of almost 8 per cent.

The biggest Footsie risers were Xstrata, Antofagasta ahead 34p to 865p, Rio Tinto and Fresnillo which ended the session 24p higher at 729p.

The biggest Footsie fallers were Aviva down 111/4p to 3441/2p, Resolution down 2p to 75p, Scottish & Southern Energy off 22p to 1143p and SABMiller which closed the day 30p lower at 1669p.