The euro steadied after an initial jump and European stocks were lower after the agreement of a second bailout deal for Greece removed the threat of a disorderly bond default but left markets unconvinced it could avoid further turmoil.
After 13 hours of talks, euro zone ministers finalized measures to cut Greece's debt to 120.5 percent of gross domestic product by 2020, securing its second rescue in less than two years and allowing it to meet a bond repayment due next month.
The euro initially jumped over half a cent against the U.S. dollar to a two-week high of $1.3293 on news of the deal, before stabilizing in early European trading at around $1.3250, about 0.1 percent higher.
It's a relief for markets, broadly speaking, but it doesn't mean that this is the end of the line, said Thomas Lam, economist at DMG & Partners Securities in Singapore
Reaction from share and commodity markets was more cautious, after rallies in recent days on hopes of an agreement on Greece combined with an easier monetary policy stance in China.
European stocks <.FTEU3>, which hit seven month highs on Monday ahead of the deal, edged down 0.2 percent to 1088.55 points, while the MSCI world equity index <.MIWD00000PUS> was also down 0.2 percent.
Safe haven German Bund futures fell at the open on Tuesday after but the losses were limited by concerns about the country's ability to implement painful austerity measures. The main Bund future contract was 14 ticks down at 137.83 compared with 137.97 at Monday's close.
(editing by Patrick Graham)