(MENAFN- AFP) European equities rose Monday on news of a long-awaited Greek bailout agreement, but the euro ran out of steam as cautious dealers awaited precise details.
In late morning trade, Frankfurt's benchmark DAX 30 index of top companies gained 1.50 percent to stand at 11,485 points and the CAC 40 in Paris rallied 2.03 percent to 5,002.30.
Outside the eurozone, London's FTSE 100 index won 0.63 percent to 6,715 points compared with Friday's close.
Greece reached a desperately-needed bailout deal with the eurozone on Monday after marathon overnight talks, in a historic agreement to prevent the country crashing out of the European single currency.
In reaction, the euro briefly rose to a July peak of $1.1216. However, it then fell back to $1.1077, down sharply from $1.1149 late in New York on Friday.
"The relief rally in the euro was short-lived as investors await details of the Greek agreement," said Nick Stamenkovic, macro strategist at RIA Capital Markets.
- Fed outlook in focus -
The euro also failed to benefit because the Greek deal made it more likely the US Federal Reserve would raise interest rates soon, dealers said.
"Whilst equity investors have been buoyed by the general concept of agreement, currency investors are more cautious, as a deal on Greece now removes one of the key obstacles which might have prevented the Fed from actively considering imminent US interest rate rises," said analyst Rebecca O'Keefe at broker Interactive Investor.
"The removal of this barrier -- combined with signs that the Chinese equity market is also stabilising -- could allow the Federal Reserve to raise rates more quickly and this is putting pressure on the euro," she told AFP.
The new rescue for Athens is the country's third since 2010 and came after a bitter six-month struggle following Tsipras's election in January that put Greece's membership of the eurozone in the balance.
"EuroSummit has unanimously reached agreement," EU President Donald Tusk said. "All ready to go for ESM (eurozone bailout fund the European Stability Mechanism) programme for Greece with serious reforms and financial support."
Tsipras agreed to tough reforms after 17 hours of gruelling negotiations in return for a three-year bailout worth up to 86 billion euros ($96 billion), the nation's third rescue programme in five years.
Asian markets rose Monday on the back of the Greek deal, while Shanghai advanced for a third straight session after witnessing fierce recent volatility.
- Grexit is gone: Juncker -
European Commission President Jean-Claude Juncker told reporters Greece would not tumble out of the eurozone. "Grexit has gone," he said when asked by AFP if Greece's position in the euro was still in danger.
After a torrid few weeks for global markets, analysts said some confidence was returning, while Chinese markets began to recover.
Tokyo rose 1.57 percent and Seoul jumped 1.49 percent.
Shanghai rallied 2.39 percent and Hong Kong was up 1.30 percent.
However, Sydney gave back early gains to end 0.34 percent lower. Tokyo, Sydney and Seoul closed before the deal was announced.
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