TOKYO – Global stock markets bounced higher Monday after Greece and its European creditors agreed on a bailout deal, substantially reducing the uncertainty about Greece’s future in the euro common currency.
KEEPING SCORE: France’s CAC 40 added 1.5 per cent to 4,978.40 and Germany’s DAX rose 1.2 per cent to 11,452.85. Britain’s FTSE 100 edged up 0.7 per cent to 6,720.05. U.S. shares were set to open higher. Dow futures added 0.4 per cent to 17,741.00. S&P 500 futures rose 0.4 per cent to 2,076.50.
GREECE FACTOR: A summit of European leaders reached a tentative agreement with Greece, removing an immediate threat that the country could collapse financially and leave the euro. Nine hours after a self-imposed deadline passed, the leaders announced the breakthrough early Monday. If the talks had failed, Greece could have faced bankruptcy and a possible exit from the euro. The deal needs approval from Greece’s parliament among others.
ANALYST’S TAKE: “From the perspective of those seeking reform in Greece, current bank closures appear to represent an opportunity to maximize pressure and force immediate action by the Greek parliament,” said Ric Spooner, chief analyst at CMC Markets in Sydney.
ASIA’S DAY: Japan’s Nikkei 225 gained 1.6 per cent to 20,089.77. South Korea’s Kospi climbed 1.5 per cent to 2,061.52. Hong Kong’s Hang Seng rose 1.3 per cent to 25,224.01. The Shanghai Composite added 2.4 per cent to 3,970.39, bouncing back after a slew of government measures to halt a dramatic slide. Australia’s S&P/ASX 200 was little changed, slipping 0.3 per cent to 5,473.20. Other regional markets were also higher, including Taiwan, Singapore, Thailand and Indonesia.
ENERGY: Benchmark U.S. crude was down 90 cents to $51.84 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, lost $1.11 to $58.73 a barrel in London. Oil prices have dropped as expectations grow that a provisional agreement may be reached soon on the Iran nuclear talks to curb the country’s atomic program in return for tens of billions of dollars in sanctions relief.
CURRENCIES: The euro initially spiked higher on the Greece bailout news then dropped to $1.1081 compared with $1.1157 on Friday. The dollar cost 123.43 yen, up from 122.76 yen.
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