European Markets Up on Greece Deal News

Markets Dow Jones Newswires

European stocks climbed Monday, with the new week ushered in by news that Greece has struck a deal that should unlock new funding for the cash-strapped country.

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The Stoxx Europe 600 rose 1.5% to 394.56, with all sectors trading higher.

In Frankfurt, the DAX 30 gained 1.6% to 11,494.18, and in Paris, the CAC 40 popped up 1.6% to 5,002.08.

Following overnight talks, leaders from eurozone countries reached a unanimous deal to give Greece a new three-year bailout (http://www.marketwatch.com/story/greece-to-get-third-bailout-after-eurozone-leaders-strike-unanimous-agreement-2015-07-13), staving off the risk the Hellenic nation will be forced to leave the euro in a "Grexit".

"The decision gives Greece the chance to get back on the track for support from European partners. It also avoids the social, economical and political consequences that a negative outcome would have brought," said President of the European Council Donald Tusk in a news conference.

The deal needs to be approved by national parliaments (http://www.marketwatch.com/story/grexit-avoided-after-agreekment-is-sealed-say-eurozone-leaders-2015-07-13), including the Greek parliament, before formal negotiations about a bailout through the eurozone's bailout fund can begin.

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Spain's IBEX 35 picked up 1.5% to 11,204.90, and Italy's FTSE MIB moved up 1.5% to 11,203.80. The U.K.'s FTSE 100 rose 0.7% to 6,719.96.

Equity trading in Greece remains closed, as do the country's banks.

The euro (http://www.marketwatch.com/story/euro-mixed-versus-rivals-after-greece-reaches-bailout-deal-2015-07-13) traded mixed against its major rivals. After initially rising against the U.S. dollar, the shared currency fell to $1.1081 from $1.1156 late Friday in New York.

In the fixed-income market, the yield on 10-year German government bonds rose 2 basis points to 0.91%, according to electronic trading platform Tradeweb. The yield on 10-year Spanish debt gained 3 basis points to 2.156%, and the yield on 10-year Italian government bonds was up 1 basis point to 2.149%.