Investing.com - European stock markets rallied after the open on Monday, as investors cheered news that a deal over a third bailout deal for Greece was reached after marathon all-night talks between European leaders.
During European morning trade, the EURO STOXX 50 surged 1.7%, France’s CAC 40 jumped 1.85%, while Germany’s DAX 30 rallied 1.5%.
Market sentiment recovered as marathon overnight negotiations on a bailout deal for Greece hammered out an agreement to prevent a financial collapse and an exit from the euro area. The details of the agreement were to be announced a press conference later in the day.
European Council President Donald Tusk said early Monday that a program for Greece was "all ready to go", "with serious reforms and financial support".
The Greek parliament must pass new legislation on Monday and Tuesday to implement the measures agreed in Brussels, including on pensions reform and a new sales tax regime. Parliaments in several euro zone countries will also have to approve any new bailout.
Eurogroup President Jeroen Dijsselbloem said talks on bridge financing for Greece will begin immediately, to help cover its debt repayments this summer. He also said that €50 billion of state owned Greek assets would be set aside in a fund to contribute to the recapitalization of Greek banks.
Financial stocks were higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) gained 2.9% and 2.5%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) rose 2.2% apiece.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) advanced 1.65% and 2.4% respectively, while BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) rose 2.3% and 2.2% in Spain.
In London, FTSE 100 rose 0.75%, led by Barclays (LONDON:BARC), up 1.75% and HSBC (LONDON:HSBA), which added 1.4%.
In the U.S., equity markets pointed to a higher open. The Dow Jones futures pointed to a gain of 0.45%, S&P 500 futures signaled a 0.4% increase, while the Nasdaq 100 futures indicated a 0.6% rise.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.55, up 0.6% for the day.
The greenback remained supported after Federal Reserve Chair Janet Yellen said in a speech Friday that the central bank is on track to raise interest rates at some point this year. The comments from Yellen are her most definitive to date on the timing of a 2015 rate hike.
Fed Chair Yellen appears before the House Financial Services Committee on Wednesday. Her testimony will be closely watched for further clues on when U.S. interest rates may start to rise.
Elsewhere, Chinese trade data released earlier showed that the country’s trade surplus narrowed to $46.5 billion last month from $59.5 billion in May, compared to estimates for a surplus of $55.7 billion.
Chinese exports rose 2.8% from a year earlier, beating forecasts for a decline of 0.2%, while imports fell 6.1%, better than expectations for a drop of 15.0%.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
China is scheduled to release data on second-quarter gross domestic product on Wednesday. The report is expected to show the world's second largest economy grew 6.9%, slowing from 7.0% in the preceding quarter.