NEW YORK (TheStreet) -- Greece's debt deal helps stocks, said JPMorgan Chase's (JPM - Get Report) chief economist, Anthony Chan.

"I think this deal will be good for stocks since it removes uncertainty from the markets," Chan said. "That doesn't mean we're completely out of the woods. The deal still must get approval by the Greek parliament, but I think the pieces are moving in the right direction and I think this will be positive for equity market investors."

Greece will receive $96 billion from its European creditors in exchange for spending cuts that were previously rejected by voters in a historic referendum on July 5.

What a difference a week makes. The news set European stocks higher. Greece's debt woes and default on its June 30 payment to the International Monetary Fund has rocked markets for weeks.

"Today, investors need to focus on the fact that the economic fundamentals are improving in Europe and this negative headwind is now slowly going away," Chan added. "Now the positive economic growth momentum in Europe is likely to be uninterrupted."

Plus, the markets can finally focus on the massive $1.2 trillion quantitative easing program the European Central Bank implemented back in March. Such stimulus tends to lift equity markets, as it did in the United States. But Greece's debt woes interfered with the ECB's plans to reenergize the European economy.

"The increased liquidity [from the ECB stimulus] is not only helping equity markets, but it's boosting economic growth," Chain said. "You already saw really saw strong growth in the first quarter for Europe at 1.6% growth on an annualized pace. I think you're probably going to see around 2% or even better in the second half of the year."
He said the absence of a Greece debt deal would have subtracted 0.5% to 0.75% away from growth in Europe. "Now we don't have to worry about this."

Year to date, London's FTSE 100 rose 2.4% while Germany's DAX advanced 16.9%. The benchmark index in the U.S., the S&P 500, climbed 1.8%.

Greek companies, whose shares trade in the U.S., rose on the news of a debt deal. Shippers Diana Shipping  (GSX) jumped 5% and Costamare  (CMRE - Get Report) added 1.5%.