Traders were preparing for a party on Thursday as European leaders cut a deal to bail out Greece (again), recapitalize banks and create a massive fund to serve as a safety net for the region’s governments.
Dow futures jumped 229 points in pre-market trading around 8 a.m. to 12,031, following European markets higher. The� Stoxx Europe 600 was up 3.4% and France’s CAC-40 rose 5.5%. The Euro rose above $1.40 for the first time since September.
Banks rose sharply higher, with Citigroup (C) jumping 6.6% and Bank of America (BAC) rising 8%.
Under the deal, bondholders will have to take a 50% write-down on Greek debt, and the European governments increased the bailout fund to 1 trillion Euros, or $1.4 trillion.
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