A conversation with the Wall Street Journal’s Sudeep Reddy and CNBC’s John Carney about this week on Wall Street and beyond.

On why the markets seemed to like the eurozone’s new deal:

John Carney: It showed that the Europeans had finally been able to reach an agreement. Remember we’ve had all this back-and-forth rumors everyday of Angela Merkel is going to do this, and Nicolas Sarkozy is going to do that, and they agree — oh no, they don’t agree. Having everybody actually say, ‘OK here is a plan and we’re all in agreement with it’ is a lot of progress.

How the Fed and Treasury Department may be reacting:

Sudeep Reddy: Well the key phrase is ‘if it works.’ With a lot of these things, we’ve seen them fall apart the week after they get announced. In this case, there was a lot of talk about the bailout fund, the money that’s needed here to build a firewall against Italy and Spain and all these troubles, and we just don’t know what they’re going to get with that.

For more analysis, listen to the full audio above.