Heading into the close, shares are trading around 5600, up from earlier lows caused by the continuing Greek crisis.

The UK’s leading index experienced a bloody nose in early trading, following revelations that Greece’s credit rating level had been downgraded to ‘junk’ status. Despite this setback, the FTSE managed to claw itself back above the day’s opening levels over lunch. Gas and oil producer BG Group led the winners, up +31.50p (+2.95%) following news that it has sold its 50% stake in Bristol’s Seabank power plant. The energy sector as a whole is being motored by the oil rally and another energy giant, Royal Dutch Shell, found itself in the top 5 with its A and B constituents up 2.33% and 2.39% respectively. Whether there is any continued momentum left in this oil rally remains to be seen –
 investors will hope so as it seems to be plugging the hole caused by the continuing Greek crisis.

While there has been much political wrangling over what to do about the worsening situation in Greece, one thing is clear: the markets will not wait for politicians. Portugal’s credit rating has already been reduced by two steps and we will not always have the momentum of oil rallies and the US reporting season to outweigh loses. All eyes are now on Germany to see if Angela Merkel will cut a deal with other eurozone leaders to release funds and extend further aid to Athens – something that is unlikely to be popular with German voters.