Markets in Asia rallied in overnight trade, with Hong Kong's Hang Seng up 2.2 percent. European shares are sharply higher and U.S. futures point to a positive open.
European leaders agreed to establish a supervisory body to oversee the continent's banking system. "We affirm that it is imperative to break the vicious circle between banks and sovereigns," leaders wrote in a statement published after 13 hours of talks. Still, here are David Rosenberg's 51 signs the global economy is a disaster.
European leaders also renounced seniority on its bailout of Spanish banks, sending borrowing costs lower. Earlier, leaders had planned to subordinate other debt holders, which worried debt markets. The euro surged one percent on the news, to $1.2571, while yields on the Spanish ten-year fell to 6.57 percent.