SYDNEY, July 14 (Reuters) - Australian shares are set for a strong open in line with a rally in global equities after Greece finally agreed a deal with its creditors, providing Athens with fresh bailout funds to rescue the debt-strapped nation from bankruptcy.
Greek Prime Minister bowed to German demands for one of the most sweeping austerity packages ever demanded of a euro zone government which included passing legislation to cut pensions, increase value added tax, clamp down on collective bargaining agreements and put in place quasi-automatic spending constraints. ID:nL5N0ZT0L1
The local share price index futures YAPcm1 jumped 1.7 percent to 5473.17 points, a 22.8-point premium to the underlying S&P/ASX 200 index .AXJO. The benchmark finished 0.34 percent lower on Monday.
Australian shares have barely moved this year, weighed down by a number of factors including a plunge in iron ore prices, concerns about stricter regulatory capital for banks and the eurozone crisis.
However, analysts polled by Reuters in June expect the market to rise to 5,800 points by year-end. ID:nL3N0ZB23K
New Zealand's benchmark NZX 50 index .NZ50 climbed 0.42 percent to 5,730.6 points in early trade.
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