Many Greeks may be horrified by their government’s astonishing backdown from its hard line on austerity, but financial markets are delighted.

The ASX 200 shot up by 1.8 per cent when it opened on Tuesday morning, following news of a bailout deal in Europe last night.

At 10:35 AEST the index was hovering at 5570.

• Greek deal sparks political woes

The Greek deal had a similar effect on markets around the world. The German DAX closed up 1.49 per cent, while the UK FTSE 100 closed up 0.97 per cent.

In the US, the S&P 500 was up 1.11 per cent, while the NASDAQ was up 1.48 per cent.

The world’s financial press, including in Australia, has been hostile to the Syriza government’s attempt to turn its back on austerity, focusing on the effect a ‘Grexit’ would have on markets.

The effect austerity measures will have on ordinary Greeks has received less attention.