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Europe shares up on Greece deal news | Europe shares up on Greece deal news |
(about 1 hour later) | |
(Open): Shares in London and other key European markets have risen on news that eurozone leaders have reached a deal on a third bailout for Greece. | (Open): Shares in London and other key European markets have risen on news that eurozone leaders have reached a deal on a third bailout for Greece. |
By mid morning, the FTSE 100 had gained 0.6%, or 40.29 points, to 6,713.67. Markets in France and Germany rose by 1.8% and 1.3% respectively. | |
The rises came after European Council President Donald Tusk said a bailout for Greece was "all ready to go". | |
Earlier, shares in Asian markets were mostly up on hopes for a deal. | Earlier, shares in Asian markets were mostly up on hopes for a deal. |
Bank shares surged, with the euro-area banking indexes up 2.7%. Deutsche Bank shares were also up 2.6%, while the biggest winner on Frankfurt's main index was shares and securities trader Deutsche Boerse, up 3.2%. | |
However, the euro fell slightly, down 0.6% against the dollar to buy $1.108, and down 1.09% against the pound to buy 71.1p. | |
Nick Stamenkovic at RIA Capital Markets said: "The relief rally in the euro was short-lived as investors await details of the Greek agreement." | Nick Stamenkovic at RIA Capital Markets said: "The relief rally in the euro was short-lived as investors await details of the Greek agreement." |
'Execution risk' | 'Execution risk' |
Italian and Spanish bond yields fell as they were seen as less risky, with investors moving away from safe-haven bonds such as the German bund. The German 10-year bund yield rose by 0.3% to 0.89%. | |
Italy and Spain are seen as being at less of a risk of following Greece in defaulting on their debts. | |
Eurozone leaders have said that so far, a blueprint for a Greek debt deal has been agreed, with European countries' parliamentary approval processes beginning from Wednesday. | Eurozone leaders have said that so far, a blueprint for a Greek debt deal has been agreed, with European countries' parliamentary approval processes beginning from Wednesday. |
"For the markets, it's clearly positive that there is an agreement among the European member states and that there is an atmosphere of co-operation," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels. | "For the markets, it's clearly positive that there is an agreement among the European member states and that there is an atmosphere of co-operation," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels. |
"Still, there is a bit of execution risk which may haunt us in terms of volatility." | "Still, there is a bit of execution risk which may haunt us in terms of volatility." |