European shares rally on Greek debt deal hope

Paris - European stocks rose early on Tuesday, lifted by hopes for an agreement on the Greek debt standoff after the country's new government dropped calls for a write-off of its foreign debt and proposed swapping debt for growth-linked bonds.

Finance Minister Yanis Varoufakis, in London to reassure private investors that he was not seeking a showdown with Brussels over a new debt agreement, said the new left-wing government would spare privately held bonds from losses, a source told Reuters.

At 10:02, the FTSEurofirst 300 index of top European shares was up 0.5% at 1 473.10 points.
Spain's Santander rose 1.6% after the eurozone's biggest bank reported a nearly 70% jump in fourth quarter profit, lifted by earnings from its lending business and as charges on soured loans fell.