Markets hold steady ahead of eurozone debt plan

The French and German leaders still have not agreed how to bolster the eurozone's bailout fund

Markets have held steady as they await details of an agreement to resolve the eurozone debt crisis.

Stock markets and the euro rose in early trading, before falling back.
Although a weekend summit of eurozone leaders was inconclusive, the outline of a deal was agreed, with a summit to finalise details set for Wednesday.
Eurozone leaders agreed to force banks to protect themselves against future losses, and to increase the firepower of the single currency's bailout fund.
Following a robust rally in Asian markets, European stock markets had been up 0.5%-1% in the first hour of Monday trading on the apparent progress at the talks.
Asian markets had been lifted by positive data from China and Japan, as well as the apparent progress in Brussels.
But European markets later fell back, and by mid-afternoon trading the Cac 40 index in France and the German Dax were both fractionally lower, while London's FTSE 100 was up just 0.3%.
Market sentiment was not helped by industry surveys released during the morning that suggested the French and German economies are still struggling to avoid recession.
The price of copper - an indicator of market sentiment over the global economy - rose 6% in Shanghai trading. But after the markets opened in Europe, the rally lost some of its lustre.
The euro followed a similar pattern, rising half a cent against the dollar, before dropping back. By mid-afternoon in Europe it was trading at about $1.386, down 0.2% for the day.
Pressure on Italy Among the main points of agreement reached at the weekend were:
BBC business editor Robert Peston said the 100bn euros agreed in the deal would be provided to banks by commercial investors, national governments and the EU's bailout fund.

However, it appears the bailout fund may only be used as a last resort, if governments are unable to provide the money to support their banks themselves.

Italy also came under pressure to do more to stabilise its finances.
Germany's chancellor, Angela Merkel, said she had had a "conversation among friends" with her Italian counterpart, Silvio Berlusconi.
"Italy has great economic strength, but Italy does also have a very high level of debt and that has to be reduced in a credible way in the years ahead," she said.
Guarantees However, key points of disagreement remain.
France had hoped that the European Central Bank (ECB) would support the EFSF, by providing it with loans that could increase the fund's total capacity to 2tn-3tn euros.
But this idea was blocked by Angela Merkel.
Instead, governments are expected to agree that the EFSF can help out troubled eurozone governments such as Italy and Spain by providing partial guarantees to investors and banks who lend them more money.
There was also disagreement over the extent of losses that should be imposed on Greece's lenders, with Germany seeking a 50%-60% haircut.
The ECB opposes any such increase, according to a footnote in an internal document on the Greek economy leaked over the weekend.

However, governments reportedly agreed that Greece's lenders should "consent" to the losses - something the ECB has demanded in the past.

There are fears that a unilateral default by Greece - such as a debt write-off without lenders' consent - could have unforeseen consequences, for instance by triggering payments under credit derivative contracts.
Another unknown element in talks is whether and how much non-European countries may provide support.
Brazil, Russia, India, China and South Africa are thought to be considering making additional money available via the International Monetary Fund, which could be used to complement the EFSF's efforts.
Jia Qinglin, the fourth-ranked official in the Chinese politburo, is to visit Europe this week.
'National interest' Europe's leaders have agreed to change the EU treaty if necessary.
EU president Herman Van Rompuy said after a day of emergency talks in Brussels that members would "explore the possibility of limited change".
"The aim is deepening our economic convergence and strengthening economic discipline," Mr Van Rompuy said.
Any such changes would need to be ratified by all 27 EU governments, including the UK's, and are liable to be used by the UK to demand new opt-outs from its existing obligations under EU treaties.

Mr Cameron told a news conference: "This must not be at the expense of Britain's national interest."

The prime minister is currently facing a rebellion among some euro-sceptic backbench MPs, who are demanding a referendum on the UK leaving the EU altogether.
UK Prime Minister David Cameron said he had sought assurances to protect Britain's interest if there is change.
However, he got into a spat with the French president, Nicolas Sarkozy, who told Mr Cameron: "We are sick of you criticising us and telling us what to do."
Wednesday's emergency summit will see all 27 EU government heads gather, whereas originally it was intended that only the 17 eurozone governments would meet.