Greek stocks rally as it finally agrees €85bn bailout deal

Greece has finally reached a bailout deal with its lenders after 23 hours of talks, which will see a further €85bn package handed to the struggling country.

The deal caused Greek shares to rally after days of sharp falls, with bank shares up 3% on the announcement and the Athens stock exchange jumping 2.1%. However, the agreement stipulates a range of harsh measures to be undertaken by the beleaguered eurozone country, including the introduction of a higher retirement age, opening up the energy and pharmaceutical industries and new tax measures, among others. Greece will also have to post a primary deficit no higher than 0.25% of GDP this year and a 0.5% surplus next year, rising to 1.75% in 2017 and 3.5% in 2018. Asset allocators re...