THE London market was boosted yesterday by a winning combination of strong Chinese trade data, hopes of a deal to solve Greece’s debt crisis and solid earnings reports.

The FTSE 100 Index closed 73.9 points higher to 6018.8 after banking stocks were boosted by a report which indicated Greece was to receive a fresh round of aid to combat its debt mountain.

Elsewhere, miners were lifted by figures from China, which showed its global trade surplus widening to $11.4bn (£7bn) last month, as import growth fell amid government efforts to cool an overheated economy and exports rose by nearly 30 per cent.

In the US, traders’ confidence was lifted by Microsoft’s takeover of internet telephone service Skype for $8.5bn (£5bn).

Mining stocks also benefited after bargain hunters moved in following last week’s slump in commodity prices, with Xstrata 22.5p higher at 1442p, Rio Tinto ahead 100p at 4243p and Antofagasta up 17p to 1220p.

The improved outlook in Greece helped banks recover from disappointment over a decision by the British Bankers’ Association to abandon a legal battle over the mis-selling of payment protection insurance.

Royal Bank of Scotland was ahead 0.8p to 42.5p, Lloyds Banking Group was up 1p at 54.6p and Barclays advanced 4p to 277.9p.

Strong corporate updates from Imperial Tobacco, InterContinental Hotels and Capita also improved sentiment.

Imperial Tobacco was near the top of the risers board, up 67p to 2218p, after a strong performance from emerging markets boosted first-half profits.

And support services firm Capita was 5.5p higher at 741p after it reported a record bid pipeline and recovery in demand from public sector clients.