Markets buoyed, euro soars as leaders strike debt deal

London's FTSE jumped 2% in early trading on Thursday after European leaders agreed a deal to tackle the debt crisis.

The index was more than 100 points, or 1.9%, higher at 5,654 shortly after opening.

Overnight, major indices in the US and across Asia were also lifted as news of the deal spread.

The Nikkei 225 gained 2.04% to reach 8,926.54, while Hong Kong's Hang Seng Index climbed 2.47% to 19,536.89.

US markets also closed up, with the Dow Jones gaining 1.39% to reach 11,869 and the S&P 500 climbing over 1% to 1,242.

European leaders agreed a three-pronged deal last night to expand the bail-out fund and for banks to take losses on Greek debt in exchange for recapitalisation.

The euro also strengthened, rising 1.1% against the dollar to $1,3987, while it was up 0.5% against the pound to 87.32p.

UK and European markets, which closed up yesterday, were also poised to rise according to futures, with the FTSE 100 pegged to gain more than 100 points.