European shares surged in early trade Monday after European Council President Donald Tusk
said euro zone leaders reached a unanimous agreement following
all-night talks in Brussels to move forward with a bailout loan
for Greece.
The euro zone's blue-chip Euro STOXX 50 index rose 1.3 percent, while the pan-European FTSEurofirst 300 index was up 1 percent by 0706 GMT.
Germany's DAX, France's CAC and Britain's FTSE 100 rose 0.6 to 1.4 percent.
Spain’s IBEX 35 picked up 1.5% to 11,204.90, and Italy’s FTSE MIB
moved up 1.5% to 11,203.80. The U.K.’s FTSE 100 climbed 0.7% to
6,719.96.
The euro zone's banking index also advanced 1.5
percent. President of the European Council Donald Tusk said in a press conference the decision will give Greece a chance to obtain support from European partners. "It also avoids the social, economical
and political consequences that a negative outcome would have brought.”
Now the agreement needs to be approved by national parliaments, including the Greek parliament, before formal negotiations about a bailout through the eurozone’s bailout fund can begin.
The euro was mixed after surging immediately after the deal.
EUR/USD was last at 1.1067 plunging 0.82%.
EUR/GBP was last at 0.7105.
EUR/JPY last traded at 136.66.
In the bond market, the yield on 10-year German government bonds climbed 2 basis points to
0.91%.
The yield on 10-year Spanish debt rose 3 basis points to 2.156%, and the yield on 10-year Italian government bonds was up 1 basis point to 2.149%.
