(MENAFN- Qatar News Agency) The euro surged over 1 percent and shares in Europe and Asia jumped on Friday after euro zone leaders agreed measures to cut borrowing costs in Spain and Italy and eventually recapitalise the region's banks.
With expectations low ahead of the leaders' summit, the deal caught markets by surprise.
Ten-year Spanish and Italian bond yields fell 25-32 basis points to 6.59 and 5.94 percent, respectively, and the common currency rose more than 1.2 percent on a flurry of stop-loss buying to as high as $1.2628, well clear of a low of $1.2407 on Thursday.
It later settled around $1.2600, with resistance at the June highs of $1.2748.
German bonds and the dollar headed lower, while prices for gold, oil and copper all rose.
The leaders of the 17-nation currency bloc last night agreed that euro-area rescue funds could be used for sovereign debt purchases without forcing countries to adopt extra austerity measures.
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