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'Game's Not Quite Over' in Europe: Art Cashin

U.S. stock marketsmay be surging on news of a deal on Europe's financial situation, but Art Cashin thinks there's more to come.

"Everything looks great" right now, said the UBS Financial Services director of floor operations, but "I don’t think the game’s quite over yet."

The euro-zone deal, announced early Thursday, forces private banks and insurers to accept a 50 percent loss on holdings of Greek government bonds as part of a plan to lower Greece's debt burden and try to contain the two-year-old euro zone crisis.

"You’ve gotta understand what happened," Cashin continued. "They sat down with the bank negotiators. They said, 'You’re gonna take a 50 percent haircut. They fought back, 'no no no.'"

Threatened with a loss of 100 percent if they didn't take the 50 percent, the bank negotiators accepted.

"There’s got to be some holders in Greek bonds who are not in that consortium," said Cashin. "If they start to hear they're only going to get 50 percent, you could see a court case come out of this."

What's next? "You've gotta watch the news ticker," said Cashin. "Something could come up at any time...We've kind of isolated the Greek thing and we're headed for Italy."

— Reuters contributed to this report.

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