London: Shares rose and the safe-haven Swiss franc fell against the euro on Monday after Greece reached a conditional deal with its international partners to avert an immediate financial crisis.
Yields on low-rated euro zone government bonds fell as the agreement, reached after Greece`s leftist government made big concessions, eased concerns that the country would have to leave the euro zone.
Euro zone finance ministers agreed on Friday to extend debt-laden Greece`s bailout deal for four months, provided it drew up a list of reforms by Monday.
A Greek government spokesman said the list would be sent to Brussels by the end of Monday and that they were being discussed with partners to ensure there were no last-minute hitches.
European shares rose. The pan-European FTSEurofirst 300 index was up 0.2 percent at 1,528.88 points, with earlier gains trimmed by a weaker-than-forecast German business climate index.
Spanish and Italian stocks were among the biggest gainers. Greek markets were closed for a holiday.
U.S. shares were set to open lower, according to stock index futures. The S&P 500 and Dow Jones Industrial Average both closed at record highs on Friday after the Greek deal.
"It`s kicking the can down the road, but it`s better than nothing and for the time being it will be seen as positive, assuming they can deliver these reform promises today," said Alan McQuaid, chief economist at Merrion Stockbrokers.
Japan`s Nikkei 225 stock index reached a 15-year high on Monday, though MSCI`s broadest index of Asia-Pacific shares outside Japan was down 0.3 percent. Many countries in the region returned from Lunar New Year holidays.
Yields on bonds issued by other indebted euro zone governments fell. Italian 10-year yields were down 6.8 basis points (bps) at 1.50 percent. Equivalent Spanish yields fell 8 bps to 1.42 percent.
German 10-year Bund, the euro zone benchmark, yielded 0.37 percent, up 0.1 basis point, as investors sold lower-yielding assets.
SWISS FRANC
The euro rose as high as USD 1.1430 on Friday after the agreement but was last down 0.6 percent at USD 1.1312. However, the single currency rose 0.4 percent to 1.0731 Swiss francs.
"The move in the Swiss franc is broadly in line with the overall pick up in risk appetite," said Peter Kinsella, currency strategist at Commerzbank. "Clearly, they want to keep Greece in the euro zone and as a consequence some of the safe-haven plays are being unwound."
The dollar was stronger, rising 0.6 percent against a basket of currencies. The yen was steady at 119.051 to the dollar.
Gold, another safe haven, fell to a seven-week low, down 0.9 percent at USD 1,191.01 an ounce, then rose slightly.
Oil prices initially rose on Monday but later dipped on worries about oversupply in North America and as the dollar strengthened.
Brent futures were last down 1.8 percent at USD 59.13 a barrel while U.S. crude fell 2.9 percent to USD 49.31
