Greek Deal Causes Celebration at European Banks - For Now

Tear gas is flowing and buildings are burning in Greece while bankers rejoice.
The riots and rallies are thanks to Greek policymakers, who have finally agreed on an austerity package that will help it avoid a default on its roughly €330 billion euros of outstanding debt. An agreement means that the EU and IMF will give the beleaguered and indebted Mediterranean state €130 billion in bailout funds.
The news bolstered European markets and the euro, with the FTSE 100 up over a percent and the DAX up around three quarters of a percent. Almost all European banks were up. Credit Suisse was up 1.23 percent in morning trading, UBS rose over 2.3 percent, and Deutsche Bank is up around 1.5 percent.
Asian markets had been falling in early Monday trading, but rose on news of the Greek vote, with Australian markets up nearly a percent in Sydney.
The global optimism is thanks to hope that the Greek deal means that equity markets can move on and focus on other issues besides the troubled Mediterranean state. However, Greece isn’t out of the woods quite yet. The Greek 10 year bond is actually up slightly in early trading and is still above 36 percent. Portugal’s bond market has improved, with the country’s 10-year benchmark falling by 0.2 percent to 11.78 percent.