FTSE: 5,935.02 (+35.13) Mid-250: 11,820.33 (+113.65) Small Cap: 3,283.27 (+28.86)UK STOCKS climbed for a fourth day yesterday, as European leaders agreed a new aid plan for Greece and Vodafone posted revenue that topped estimates.

The FTSE 100 rose 35.13, or 0.6 per cent, to 5,935.02 at the close in London, extending this week’s gain to 1.6 per cent. The gauge has still lost 2.6 per cent since its February high amid speculation Europe’s debt crisis may spread beyond Greece.

The broader FTSE All-Share Index gained 0.7 per cent yesterday.

“The latest deal for Greece has come as a relief,” said London-based Yusuf Heusen, senior sales trader at IG Index.

“The focus is now back on the American deficit problem,” he said.

Euro-area leaders announced €159 billion of new aid for Greece and cajoled bondholders into footing part of the bill. They also empowered their €440 billion rescue fund to buy the debt of stressed nations to help erect a firewall around Spain and Italy.

Elsewhere, US President Barack Obama and House Speaker John Boehner pressed for a broad agreement to boost the debt limit for the world’s largest economy while cutting spending before the August 2nd deadline.

Shares of Vodafone rallied 2 per cent to 164.55p after reporting a 1.5 per cent increase in service revenue as demand for smartphones bolstered data sales.

EasyJet surged 18 per cent to 368p, its biggest advance since June 2003, after Europe’s second-biggest discount airline said annual earnings will beat estimates following a 20 per cent surge in business bookings.

Rival airline Ryanair advanced 4.8 per cent to €3.46 in Dublin trading.

British Airways-owner International Consolidated Airlines gained 2.2 per cent to 243p in London.

Thomas Cook, Europe’s second-largest tour operator, advanced 5.9 per cent to 72p while TUI Travel gained 3.5 per cent to 196p.

Aviva increased 1.3 per cent to 425.4p for a fourth day of gains after both the Daily Mail and the Daily Telegraph said Zurich Financial Services may be considering an offer for the UK’s largest insurer.

RM plunged 19 per cent to 117p after the UK provider of education products said earnings may be below previous forecasts. – (Bloomberg)