While markets cheered this morning after Greece and its creditors came to a "unanimous" agreement over a third bailout deal analysts were less easily impressed.
The FTSE 100 opened 0.8 per cent higher, while the euro jumped to $1.1170 against the dollar.
And yet analysts warned investors to take heed of the fact the deal is subject to approval by the Greek parliament, and said they would like to see more detail on the nuts and bolts of the deal.
Jim Leaviss, head of retail fixed interest at M&G Investments, said:
We must not take Greek domestic approval for granted. After all this deal goes against much of what Tsipras's own party believes in, and against what the population overwhelmingly agreed to in the recent referendum.
Chris Beauchamp, senior market analyst at IG, said:
The hard work is not over – the deal still has to be got through national parliaments, with Athens and Berlin being the main ones to watch.
Danae Kyriakopoulou, senior economist at the Centre for Economics and Business Research, said:
There remains the issue of the banking sector. While a bridging agreement has been reached, the banks have suffered severe losses over the past few weeks. The European Central Bank meets later today – it remains to be seen whether it will take bold action and increase the Emergency Liquidity Assistance (ELA) cap, or whether it will hold it steady until reforms are passed in the Greek parliament.
Naeem Aslam, chief market analyst at AvaTrade, said:
The question is if this was a better deal for Greece, which was presented to them when they walked off with referendum threat. The answer is certainly no. This is nothing but a pure embarrassment for Mr Tsipras who made his people suffer for six months.
Alex Edwards, head of the corporate desk at UKForex, said:
An agreement may have been reached, but investors are now thinking ‘what next’? While European officials are patting each other on the back traders are now “selling the fact” and the euro is on the slide.
The market still needs more detail on the deal, and many investors are still questioning Greece’s longer to medium term future as part of the Eurozone. Investors are now treading very carefully in spite of the deal – especially as it still needs to be approved by the Greek parliament, though it’s probably safe to say it will be approved. Expect more volatility as the week goes on.