World markets up on word of debt ceiling deal

UNDATED - Investors around the world are breathing a sigh of relief on word of an agreement to raise the U.S. government's borrowing limit and avoid a possible American debt default.

Asian stock markets jumped Monday after President Barack Obama announced the deal from the White House.

Dow futures rose 1.5 percent. Future contracts for the broader S&P 500 index rose 1.6 percent. When futures are up during off-hours trading, stocks typically rise when the market opens.

A senior vice president at MF Global, John Brady, says if the deal is approved, he believes that ``stocks will rally, and stocks will rally big.''

But if the deal fails to pass in Congress, Brady says ``the rally will be torpedoed.''