New York, January 31 (FinanceEnquiry.com) - World markets reacted positively after European Union leaders agreed Monday to sign a fiscal pact and strengthen a financial firewall. U.S. stocks are set to open higher on Tuesday amid rising world markets before the United States S&P 500 opens. Dow Jones industrial average and Nasdaq futures are already about 0.5 percent higher. The possible movements of the markets, when they open at 9:30 a.m. ET, are indicated by the stock futures.

European Union leaders met in Brussels on Monday and agreed to set into motion the permanent rescue fund, European Stability Mechanism, in July. Originally, the €500 billion ESM was scheduled to start operating next year after the expiry of a temporary bailout fund.
Agreement was also reached by the leaders of the 27-nation EU, except two members, to sign a fiscal pact that would prevent governments from building up unsustainable debts and excessive deficits. However, there was no resolution of the debt crisis in Greece which might not be able to make a €14 billion debt payment due on March 20, without a deal with private-sector creditors.

Before the opening bell, investors will keenly await results from Exxon Mobil, UPS, Pfizer and Mattel. By Monday afternoon, U.S. stocks had recovered most of their lost ground but could not come out of red due to concerns about Greece. In morning trading, European stocks made significant gains with Britain’s FTSE 100 gaining 0.8 percent, Germany’s DAX gaining 1 percent and France’s CAC 40 rising 1.3 percent.