23 Jul 2011

Markets lift on Greek deal

6:27 am on 23 July 2011

Sharemarkets have risen following an agreement by the eurozone designed to resolve the Greek debt crisis.

Markets in London and Paris gained more than 1% in morning trading, before slipping slightly, with the FTSE 100 index ending up 0.6% and the CAC-40 0.7% higher.

The Nikkei share index in Japan earlier closed up 1.2%.

Eurozone leaders agreed a new package worth 109 billion euros ($US155 billion) on THursday.

Private lenders will also be asked to contribute.

The BBC reports the eurozone package lowers the interest rates that Greece and the other two countries that have received bail-outs - Portugal and the Irish Republic - have to pay.

Greek Finance Minister Evangelos Venizelos said the deal would provide ''great relief for the Greek economy''.

Stocks in the United States were lower in Friday morning trading in New York, with the Dow Jones index down 0.4%.

However, analysts said Wall Street investors were more focused on the US's own debt problems.