Offshore markets rise after EZ bank deal
Updated at 1:02 pm on 30 June 2012
Stock markets in Europe rose sharply after Eurozone members agreed on to restore financial stability.
Struggling banks are to receive money directly from the proposed European bailout fund, rather than via their governments, which should help reduce government borrowing costs.
A single supervisory body for Eurozone banks will also be set up by the end of the year.
The DAX in Frankfurt closed 4.33% higher, the CAC-40 in Paris was up 4.75% and the FTSE 100 in London rose by 1.4%.
In Greece, the Athex index of shares rose 5.63%. the IBEX index in Madrid rose 5.66% to its highest level for two years and the FTSE MIB in Milan added 6.59%.
Banking stocks were the main winners: Societe Generale and BNP Paribas both rose more than 9%. Commerzbank and Deutsche Bank, added 6.2% and 5.91% respectively.
Spanish and Italian bond yields also fell on news of the deal.
The euro surged against other currencies.
Markets in the United States also rose significantly. The Dow Jones industrial average was up 1.75% and the Nasdaq was up 3%.
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