Markets Are Surging After European Breakthrough, Dow Up 220

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Photo: FinViz

Global markets are surging on news that EU leaders have a new bank recapitalization.Dow Jones Up 227 points or 1.8%.

S&P 500 up 26 points or 1.9%.

Nasdaq up 63 points or 2.2%.

Late last night after lengthy talks, EU leaders issued a statement with a plan to establish a central supervisory body to oversee the European banking system.   The new plan would allow banks to secure bailout financing directly, which would prevent the size of the national government’s debt from expanding.

Traders and investors are applauding the plan as a major step towards easing the eurozone’s debt crisis.

It’s worth noting that the plan isn’t without its critics.  Analysts at Morgan Stanley argue that it is not a “meaningful step forward.”  Others have noted that the plan fails to address the problems in Greece.

For Complete Details: Why This Summit Has Been A Watershed Moment For Europe >

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