A clear sense of relief in global markets on hopes of a Greek deal may be short-lived even if an agreement is reached, analysts say.
Germany's benchmark Dax stock index soared to close 3.8 percent higher, while stocks in Athens jumped to close 9 percent higher on Monday after the head of the Eurogroup, Jeroen Dijsselbloem, said he was hoping for an agreement later this week.
But any deal is unlikely to solve Greece's long-term financial woes and that means uncertainty about its future is likely to hang over markets for some time, analysts said.
"Markets feel like it's a done deal… My gut instinct is it would be wrong for markets to celebrate a Brussels' political mash-up compromise over economic reality," Bill Blain, a strategist at Mint Partners in London, said in a note.
"Nothing will be solved. I suspect it would be far better for everyone in the medium term to bite the leather thong, have a swig of brandy, and amputate Greece from the body-European now before the festering sore becomes even more a gangrenous distraction," he said.