UK and EU shares hit multi-year highs

The UK’s top 100 share index reached a 15-year high on Wednesday and the FTSEurofirst 300 rose to its highest in seven years on hopes that Greece may still reach a deal over its debt.

Shares in Britain were also driven higher by a better than expected labour report, which highlighted that earners in the UK saw an increase in purchasing power.

UK inflation has fallen to a record low of 0.3 per cent and average wage growth grew to 2.1 per cent, which effectively puts more money in the pocket of consumers in Britain.

Europe’s key focus remains on Greece and the negotiations with its European creditors. The past few weeks of talks has yet to result in any agreement and a recent report from JPMorgan suggests that time is running out for Greece.

Analysts at the US bank have calculated that Greek banks lose around €2 billion worth of deposits every week, which would only be sustainable for 14 days.

It means that Greek banks will have to rely heavily on funds from the European Central Bank to survive, which puts pressure on Greece to get an extension to its bailout and finalise a deal with Europe.