Eurozone leader concluded the summit on Jun 29th with 3 main agreements. First, they are making the initial step towards a banking union. They plan to create a single supervisory mechanism for banks in the Eurozone by the end of this year and it will involve the ECB. The European Stability Mechanism could then have the capability to recapitalize banks directly. Second, they are allowing the European Financial Stability Mechanism to inject capital directly into Spanish banks without gaining the preferred creditor status. This means the Spanish government will not be overloaded with pressure that came with the rescue package. Third, the leaders confirmed the commitment to use European Financial Stability Mechanism instruments to purchase government securities to stabilize the market. Euro rebounded above 1.26 against the dollar, Euro Stoxx up 4.96%, DAX up 4.33%, giving the rest of the world a break heading into the week of July 4th.