Markets rise after eurozone agreement

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INVESTORS flocked to the markets after European leaders delivered a long-awaited action plan to tackle the eurozone debt crisis.

The FTSE 100 Index was two per cent higher after leaders agreed to bolster banks’ finances, allow banks to write-off 50 per cent of Greek debt and boost the eurozone bailout fund to one trillion euros (£880billion).

The agreement comes after months of deliberation with EU heads of state coming under immense pressure to finalise a plan to prevent the crisis from pushing the continent back into recession.

Carsten Brzeski, analyst at ING Bank, said the three-pronged solution was “supposed to form a Euro-style bazooka”.

“Even if it probably was not the final word on the crisis, it is again another important step in the right direction,” he said.

Elsewhere, France’s Cac-40 was ahead 2.9 per cent and the Dax in Germany jumped more than three per cent after a strong run in Asia, where Hong Kong’s Hang Seng was 2.7 per cent higher and Japan’s Nikkei was two per cent higher.