Markets welcome EU deal

Markets welcomed an agreement that European leaders reached – without Britain –  overnight.

Shortly before the New York close, the Dow Jones index had almost reversed the previous day’s losses, and was trading more than 190 points higher, on the day.

European leaders said  26  of the 27 EU member states had backed a tax and budget pact to tackle the eurozone debt crisis.

Only the UK has said it will not join.

The British Prime Minister David Cameron said he had to protect key British interests, including its financial markets.

The BBC said the17 countries that use the euro had all agreed to the deal.

Nine other countries had said they would sign up, some pending consultations with their parliaments.

Hungary originally said it would also remain outside the deal but has now changed its stance.