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Markets boosted by euro zone deal

Thursday, October 27, 2011 - 02:01

Oct. 27 - Markets welcome euro zone leaders' announcement of a scaled up bail out fund and measures to reduce Greece's hefty debt burden, but questions still remain. Kirsty Basset reports.

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Euro zone leaders have reason to breathe a sigh of relief - as markets around the world welcomed news of a breakthrough in euro zone debt negotiations. World Bank President Robert Zoellick was full of praise, but added there was more work to be done. (SOUNDBITE) (English) WORLD BANK GROUP PRESIDENT ROBERT ZOELLICK SAYING: "I compliment the members of the European Union for facing and making difficult decisions. Of course, problems like this can't be solved by waving a magic wand, and the implementation of the three core elements will require follow through." Leaders agreed to scale up the euro zone bail out fund, and private investors will voluntarily accept 50 per cent writedowns on their Greek holdings, giving markets some breathing space. World stocks and the euro rose to their highest levels in nearly two months, while brent crude and copper prices also rallied. European bank shares surged nearly seven per cent, with Greek bank stocks up more than 10 per cent. But London Capital Group analyst Angus Campbell says markets will be waiting for crucial details to emerge. (SOUNDBITE)(English) LONDON CAPITAL GROUP ANALYST ANGUS CAMPBELL SAYING: "Of course there will come a point in time when the market says 'hello, you told us you were going to increase the size of the EFSF to 1 trillion euros, you haven't done that yet, what's going on, you haven't given us the details' so markets will become impatient if those details aren't forthcoming but right at this moment in time at least there is more meat on the bone." And questions do remain - among those, how exactly the bailout fund will be increased to 1 trillion euros. Leaders are expected to flesh out more details in November, although an exact date has not yet been fixed. Kirsty Basset, Reuters.

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Markets boosted by euro zone deal

Thursday, October 27, 2011 - 02:01