Futures higher on Greek deal

U.S. stock markets were tipped to open higher on Monday following news that Greece and its international creditors have reached a bailout agreement.

European Council President Donald Tusk said early on Monday that euro zone leaders reached an unanimous agreement with Greece after all-night talks in Brussels to move forward with a bailout loan for Greece provided Athens implement tough reforms.

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"Markets have responded very positively to the news, which comes following months of uncertainty and increasing fears that Greece could suffer a messy exit from the euro zone," Craig Erlam, a senior market analyst at currency trading firm OANDA.

"The euro saw an initial positive reaction to the deal, although those gains have been largely pared at this stage, European indices have opened very strongly and periphery debt yields are on the decline," he added.

The European Central Bank announced it maintains the emergency assistance cap for Greek banks, which remain closed.

European stock markets rallied on news of the deal, with stock markets in France and Germany trading more than 1.5 percent higher.

That helped set the tone for trade in U.S. stock index futures, with futures for the blue-chip Dow Jones industrial average futures more than 100 points higher in morning trade.

The euro meanwhile was trading below $1.11, little changed on the day.

(L-R) Greece's Prime Minister Alexis Tsipras, European Commission President Jean-Claude Juncker, France's President Francois Hollande and Belgium's Prime Minister Charles Michel attend an euro zone leaders summit in Brussels, Belgium, July 12, 2015.
Francois Lenoir | Reuters
(L-R) Greece's Prime Minister Alexis Tsipras, European Commission President Jean-Claude Juncker, France's President Francois Hollande and Belgium's Prime Minister Charles Michel attend an euro zone leaders summit in Brussels, Belgium, July 12, 2015.

Concerns about Greece's future have dominated markets in recent weeks, with a failure to reach a cash-for-reforms deal fuelling fears that the indebted nation could become the first to leave the euro zone.

U.S. stocks closed more than 1 percent higher on Friday, recovering from heavy selling earlier in the week, as hopes for a resolution in Greece and a stabilization in China's stock market lifted sentiment.

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There's little in the way of major U.S. economic news on the calendar this session, with attention turning to Federal Reserve chief Janet Yellen, who delivers her semi-annual testimony on the economy to Congress on Wednesday and Thursday.

No significant earnings are expected on Monday but the second-quarter earnings season gets underway with a slew of major reports on Tuesday that include JPMorgan Chase and Wells Fargo.

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