Europe shares up on Greece deal news
- Published
(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".
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."
'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.
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.
"Still, there is a bit of execution risk which may haunt us in terms of volatility."