Monday was destined to be a busy day once news broke that the European Union had reached a deal to provide emergency funding to prevent the Greek credit crisis from spreading to other countries. The total value of the package is 750 billion euros (US$975 billion) and under the terms of the arrangement, the sixteen member states will be able to draw from 440 billion euros in loan guarantees, with 60 billion euros reserved for emergency funding. The International Monetary Fund (IMF) will provide an additional 250 billion euros.
As global markets came online Monday morning, it appears that some level of confidence has returned. By mid-day trading in Europe, LondonÃ¢â‚¬â„¢s FTSE 100 and GermanyÃ¢â‚¬â„¢s Dax, had both gained about 5 percent. In France, the Cac 40 gained a full eight percent. Oil prices rose sharply and the euro gained 2.7 percent against the dollar before falling to 0.4 percent higher at $1.2810 by 2:00 pm in New York.