Leaders reach eurozone debt deal

Leaders reach eurozone debt deal

NEW YORK (CNNMoney) -- U.S. stocks were set to rally at the open Thursday, after European Union leaders agreed to expand Europe's bailout fund and take major losses on Greek bonds -- the latest step in an ongoing effort to curb the region's debt crisis.

The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were nearly 2% higher ahead of the opening bell Thursday morning. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

The eurozone debt agreementcame at the end of marathon talks early Thursday, which aimed to find a solution to the debt crisis in Greece, instability in the banking sector, and an inadequate bailout fund.

Under the new plan, Greek bondholders voluntarily agreed to write down the value of Greek bonds by 50% -- which translates into €100 billion -- and will reduce the nation's debt load to 120% of economic output from 150%.

Europe: It's a deal!

Leaders also agreed to leverage the region's bailout fund by four or five fold, the statement said, boosting its resources to about €1 trillion.

The agreement also calls for the creation of a new financing program with the International Monetary Fund worth up to €100 billion, according to an official statement.

All indexes closed higher on Wednesday, as investors started betting that European leaders may seal a deal addressing the debt crisis.

World markets: European stocks soared in morning trading. Britain's FTSE 100 (UKX) climbed 2%, the DAX (DAX) in Germany rallied 3.9%, and France's CAC 40 (CAC40) jumped 4%.

Asian markets ended slightly higher. The Shanghai Composite (SHCOMP) edged up 0.3%, the Hang Seng (HSI) in Hong Kong gained 3.3% and Japan's Nikkei (N225) rose 2%.

The Bank of Japan announced early Thursday it is boosting purchases of government bonds to help stimulate the economy, warning of a strong yen and ongoing risks in global financial markets and overseas economies.

Economy: The U.S. government will report its highly-anticipated third-quarter GDP figures Thursday morning. Analysts surveyed by Briefing.com expect GDP to have grown at a rate of 2.3%, after growing at 1.3% in the previous quarter.

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Weekly data on initial jobless claims will also be released. Unemployment benefits claims are expected to hold steady at 402,000, after hitting 403,000 the week prior.

Companies: Firms including Procter and Gamble (PG, Fortune 500), Exxon Mobil (XOM, Fortune 500), and Consol Energy (CNX,Fortune 500) will report their quarterly results before the bell on Thursday.

Currencies and commodities: The dollar fell against the euro, the Japanese yen and the British pound.

Oil for December delivery gained $2.12 to $92.32 a barrel.

Gold futures for December delivery slipped $12.80 to $1,710.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.13% from 2.21% late Wednesday.