New York - AFP
Global stock markets soared, the euro rebounded and oil prices jumped in a massive relief rally Thursday after EU leaders agreed a deal to resolve the eurozone crisis and data showed the US economy growing faster than expected. European and US stock markets put on up to six percent while the euro set its best level against the dollar in eight weeks, ever since worries about the ability of European leaders to come to grips with the spreading crisis cast a dark cloud over markets. Dealers said there may be many reservations about the deal but the immediate reaction was one of relief that there appeared to be a coherent and comprehensive response to a crisis that threatened to wreck the eurozone and the world economy. \"The European fix is in and market participants appear to be pleased with what they have heard, even though it isn\'t exactly a plan where all the i\'s have been dotted and the t\'s have been crossed,\" said Patrick O\'Hare of Briefing.com. \"After months of limbo, the bulls seem more or less elated by today\'s news,\" said Elizabeth Harrow of Schaeffer\'s Investment Research. In Frankfurt, the DAX 30 gained 5.35 percent, the CAC-40 jumped 6.28 percent, and London\'s FTSE-100 closed up 2.89 percent. In the United States, the Dow added 2.86 percent, the S&P 500 3.43 percent, and the Nasdaq 3.32 percent. Enjoying the spillover, Mexican stocks gained 2.54 percent and Brazil\'s bourse surged 3.72 percent. Earlier, Asian markets got a solid boost from the news of the EU deal, with Hong Kong\'s Hang Seng Index picking up 3.26 percent and Singapore adding 2.80 percent. The euro surged 3.4 cents against the dollar to above $1.42 before settling at 2100 GMT at $1.4187, compared to $1.3908 a day earlier. Oil prices spiked as well: New York\'s main oil contract, WTI crude for delivery in December, jumped $3.76 to $93.96 a barrel; in London, Brent North Sea crude gained $3.02 to $111.93. Share prices for banks on both sides of the Atlantic led the markets, amid relief that, under the plan, Greece\'s problems will be ring-fenced and the EU emergency rescue fund should have enough new firepower to prevent other countries, especially Italy and Spain, from succumbing to a market meltdown. Also giving stocks a boost was the US government\'s first estimate of third quarter GDP growth, a better-than-expected 2.5 percent pace, quelling worries that the American economy was sinking into a new recession in the past few months. The relief across the markets was palpable. \"Decisions have been made in Europe, and even if we are short on detail Europe\'s leaders are talking the right game and the markets seem to like it,\" said Kathleen Brooks, an analyst at traders Forex.com. \"Overall, the agreement is welcome and addresses the fundamental issues underlying the eurozone debt crisis,\" said Barry Dixon, analyst at Davy stockbrokers. \"Whether the detail of the agreement is sufficient to quell market concerns over the medium term remains to be seen,\" he cautioned, sharing the concerns of many investors. Meeschaert Capital analyst Gregori Volokhine expressed relief after weeks of European news overshadowing what he said was a fairly solid US quarterly results reporting season. \"We had a really anti-European media barrage announcing the end of the world in Europe, it was amazing,\" Volokhine told AFP. \"Now the US markets will be able to shift their attention away,\" he said. \"Within one or two days we will no longer talk about Europe ... and we will try to finish the year very strongly.\"