Global stock markets have soared after the European Union and International Monetary¹ Fund intervened to stop the Greek debt crisis spreading.

欧盟和国际货币基金组织联合采取措施阻止希腊债务危机蔓延之后，全球股价疯涨。

Wall Street closed 4% up, after a 5% rise on the main UK and German stock markets, and a 9% surge（巨涌，大浪） in France.

The euro also saw initial gains against both the dollar and pound, but they were later erased².

On Sunday, the EU and IMF agreed a 750bn euro ($975bn; £650bn) loan-guarantee deal.

The size of the deal took markets by surprise.

"This truly is overwhelming（压倒性的） force, and should be more than sufficient to stabilise markets in the near term, prevent panic and contain the risk of contagion³（蔓延） ," said Mario Annunziata at UniCredit bank.

BBC economics editor Stephanie Flanders added: "If we are to take this package at face value, the rules of European Monetary Union have been fundamentally re-written."

The US Dow Jones index closed up 404 points at 10,785 in New York. In London, the FTSE 100 closed 264.4 points higher at 5,387, having reached 5,400 at one stage.

Banking⁴ stocks led the rally in Europe. In London, shares in Barclays jumped 16.2%, while those in Royal Bank of Scotland, Lloyds Banking Group and Standard Chartered climbed more than 10%.

In Paris, Societe Generale and Credit Agricole surged more than 20%, while in Frankfurt, Deutsche Bank and Commerzbank were up about 10%.

The risk premium⁵（风险酬金） on some eurozone government bonds also fell sharply, as did the price of insuring them against default.

For example, the interest rate on two-year Greek bonds fell immediately, from 18.1% to 4.9%.

The EU agreement also paved the way for the European Central Bank to start buying government debt, which helped to reduce bond yields（公债利息） .