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 1.9 percent to 4,998.33 and Germany's DAX rose 1.3 percent to 11,457.69. Britain's FTSE 100 edged up 0.8 percent to 6,723.91. U.S. shares were set to open higher. Dow and S&P 500 futures both rose 0.7 percent.
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. The country will have to accept tough budget conditions in exchange for a three-year rescue program.
ANALYST'S TAKE: "The euro area summit managed to reach an agreement with Greece, with the latter pretty much backtracking on all its pre-election demands. This should support risk appetite," said Vasileios Gkionakis, global head of forex strategy at UniCredit Bank in London.
ASIA'S DAY: 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.
ENERGY: Benchmark U.S. crude was down 83 cents to $52.30 a barrel in electronic trading on the New York Mercantile Exchange. 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 $1.1070 compared with $1.1157 on Friday. The dollar cost 123.36 yen, up from 122.76 yen.