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Europe shares up on Greece deal news | Europe shares up on Greece deal news |
(about 5 hours later) | |
(Close): 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 the close, the FTSE 100 had gained 0.97%, or 64.57 points, to end at 6,737.95. | |
France's CAC-40 closed up 1.94% at 4,998.10 while Germany's Dax ended up 1.49% at 11,484.38. | |
The rises came after European Council President Donald Tusk said a bailout for Greece was "all ready to go". | The rises came after European Council President Donald Tusk said a bailout for Greece was "all ready to go". |
US stock markets also traded higher early in the session. | |
Bank and financial shares surged, with Germany's Deutsche Bank shares closing up 3.3%, while the biggest winner on Frankfurt's main index was the stock exchange Deutsche Boerse up 4.38%. | |
However, after an early spike upwards, the euro fell 1.19% against the dollar to buy $1.1024, and tumbled 1.18% against the pound to buy 71p. | |
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' |
An initial drop in the yield, or cost of government borrowing, in Italy and Spain - the countries seen most at risk from the knock-on effects of a Greece exit - also tapered off. | An initial drop in the yield, or cost of government borrowing, in Italy and Spain - the countries seen most at risk from the knock-on effects of a Greece exit - also tapered off. |
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." |