US markets gain as Merkel and Sarkozy reach a deal

The S&P 500 has risen 1.7%, with European equity markets also holding onto gains after German Chancellor Angela Merkel and French President Nicolas Sarkozy reached accord on the debt crisis.

The S&P 500 was up 20 points at 1,265 in early trading in the US, while the Dow climbed 156 points to 12,175. France's Cac 40 was up 1.5% at 3,213, and Germany's Dax was 1.1% higher at 6,146. The FTSE 100 struggled to add to earlier gains and remained up just 0.6% at 5,583 as Merkel and Sarkozy outlined a new agreement proposing automatic sanctions in the event of a eurozone member's deficit to GDP ratio exceeding 3%. The leaders also suggested the creation of a new EU treaty, and said they had agreed private sector bondholders will not be responsible for losses in any future debt ...