Europe stocks close higher after Greek deal reached

Europe stocks higher; French CAC up 1.8% after Greek deal
Europe stocks close higher after Greek deal reached   

European equities ended sharply higher on Monday after European negotiators reached a deal over a third bailout for Greece.

The pan-European Stoxx 600 index finished around 1.9 percent higher as markets breathed a sigh of relief.

Britain's FTSE 100 traded to close around 1 percent higher, while the German DAX and Spanish IBEX 35 finished around 1.5 and 1.7 percent higher, respectively. The French CAC 40, meanwhile, celebrated the news by ending the day around 1.9 percent up.

U.S. stocks followed the overseas gains, rallying 1 percent plus on Monday around the Europe close, on the news of a bailout agreement between Greece and its creditors.

Greek deal reached

Greek Prime Minister Alexis Tsipras speaks with German Chancellor Angela Merkel (L) and French President Francois Hollande at a euro zone leaders summit in Brussels, Belgium, July 12, 2015.
Greek crisis: 'Agreekement' confirmed   

European Council President, Donald Tusk, confirmed that there was "unanimous agreement" on a bailout deal for Greece, after marathon negotiations lasting around 17 hours.

In a press conference, Tusk said the agreement, "avoids the social, economic and political consequences that a negative outcome would have brought." He added that European politicians would now discuss bridge financing for Greece.

Read More Live blog: Overnight talks result in deal with Greece

News of the deal raised hopes that a so-called Grexit - or Greece leaving the euro zone - is off the table, but will need to be approved by the Greek parliament.

Banks get a lift

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FTSE
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DAX
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CAC
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IBEX 35
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The Stoxx 600 banking sector closed around 2.4 percent higher, after coming under pressure last week because of concerns over exposure to the Greek crisis. Natixis and Societe Generale both finished the day up around 2.6 to 2.7 percent.

Pharmaceutical firm Sanofi was saw its shares up around 2.8 percent at the close after a number of banks raised their target price for the stock.

Airline conglomerate IAG finished trading around 3.4 percent higher after Ryanair last week voted to accept IAG's offer to buy its stake in Aer Lingus.

Miners reverse earlier losses

Miners came under pressure on Monday as the continued downturn in metal prices continue to hit shares in several firms.

Fresnillo and Randgold were trading in the red, before paring losses. Fresnillo closed around the flat line. Randgold however reversed earlier losses, finishing around 0.5 percent up. BHP Billiton and Glencore followed this trend, reversing previous losses to finish the day up above 2 percent.

Meanwhile, U.K.-based loans company International Personal Finance tanked over 25 percent by the close after it released a statement about how it would be affected by an amendment to a key consumer finance law in Poland.

There are no major earnings or data releases Monday.