Global stocks rise on Greece bailout deal
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.
France's CAC 40 added 1.5 percent to 4,978.40 and Germany's DAX rose 1.2 percent to 11,452.85. Britain's FTSE 100 edged up 0.7 percent to 6,720.05. U.S. shares were set to open higher: Both Dow and S&P 500 futures added 0.7 percent.
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.
"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.
Japan's Nikkei 225 gained 1.6 percent to 20,089.77. South Korea's Kospi climbed 1.5 percent to 2,061.52. Hong Kong's Hang Seng rose 1.3 percent to 25,224.01. The Shanghai Composite added 2.4 percent 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 percent to 5,473.20. Other regional markets were also higher, including Taiwan, Singapore, Thailand and Indonesia.
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.
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.