EU deal for Spain, Italy buoys markets but details sketchy

Economists and non-euro EU leaders cheered Friday's euro zone summit deal as a surprise “breakthrough” in efforts to preserve a stable currency, yet crucial details still need to be filled in.

With market expectations low ahead of the European Union summit, a deal that bolstered

confidence in the euro was wrenched after all-night talks between euro zone leaders, bringing swift relief to crisis-hit Italy and Spain.

The single currency leapt in value and bond yields tumbled as it appeared that politicians might finally have got ahead of the markets, though it remained to be seen for how long.

EU president Herman Van Rompuy hailed a “real breakthrough” in efforts to prevent future crises as the 17 euro zone members agreed to let the future European Stability Mechanism (ESM) recapitalise ailing banks directly.

Read more: EU deal for Spain, Italy buoys markets but details sketchy - Hindustan Times