Shares jump on Eurozone deal

LOCAL shares have jumped sharply on news European leaders have reaffirmed a commitment to use rescue funds to reassure markets and restore stability.

Shortly before 1pm (AEST), the local market went from trading flat to suddenly being more than 1 per cent or 50 points higher.

About 1.45pm the All Ordinaries was up 1.4 per cent, with the ASX 200 up 59 points.

The Australia dollar has also risen on the news, jumping by around a cent to 101.4 US cents.

The rise came on news eurozone leaders had struck a deal which opens the door to the use of rescue funds to bring down borrowing costs of struggling nations.

Read more at ABC news online.