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Cautious market reaction to Greek bailout

Cautious market reaction to Greek bailout
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European markets reacted cautiously to news of the deal on the Greek bailout.

The euro steadied after an initial jump – first rising over half a cent against the US dollar to a two-week high, before stabilising in early trading.

European stocks were lower after the agreement removed the threat of a messy debt default.

One economist said the deal was a relief for markets, but it did not mean this was the end of the line.

Markets remain unconvinced that further turmoil will be avoided. There are concerns about Greece’s ability to implement painful austerity measures.

In Frankfurt, some market employees dressed as punks or in other colourful costumes, such as one trader seen monitoring screens in a shark outfit.

This was not a bizarre response to the Greek deal – people were simply celebrating the annual ‘Fasching’ festival, known elsewhere as Mardi Gras.