World equity prices rallied on Monday as investors welcomed a conditional agreement to negotiations aimed at keeping Greece afloat with a bailout and to stay within the euro zone.
European equities surged almost 2 per cent while Wall Street jumped more than 1 per cent after euro zone leaders made Greece surrender much of its sovereignty to outside supervision in return for agreeing to talks on an 86-billion-euro bailout.
However, investors were anxious that a deal was not entirely in hand and that international lenders, led by Germany, obliged leftist Prime Minister Alexis Tsipras of Greece to abandon his promises of ending austerity.
The deal is contingent on Greece meeting a tight timetable to enact reforms of value added tax, pensions and budget cuts.
"This is not over yet. In fact it might be far from over," said Anthony Lawler, a portfolio manager who invests in hedge funds at investment firm GAM in London. "It is not at all certain that the Greek government will accept what is proposed."
The conditional deal turned the focus in foreign exchange to a potential rate hike by the Federal Reserve in September. Comments from central bank Chair Janet Yellen and Boston Fed President Eric Rosengren on Friday suggested that could be likely.