European shares stage recovery on Greek deal

LONDON Tue Nov 27, 2012 3:09am EST

LONDON Nov 27 (Reuters) - European stocks rose on Tuesday, recovering after weakness in the previous session, as international lenders agreed to reduce Greece's debt, paving the way for the next disbursement of aid.

The lenders agreed late on Monday on measures to cut Greek debt by 40 billion euros by 2020, reducing it to 124 percent of GDP. Greece will receive up to 43.7 billion euros in stages.

The FTSEurofirst 300 was up 0.6 percent at 1,111.20 by 0804 GMT, having dipped 0.5 percent on Monday following a five-session winning streak.

Traders, however, were doubtful as to the sustainability of any meaningful gains.

"What we've averted here is the likelihood of a Greek default in the short term. I don't think it's taken it off the table in the long term," Michael Hewson, senior markets analyst at CMC Markets, said.

"We're still in the broad range in European markets and I don't think this really changes anything with respect to that ... The outlook for growth in Europe still remains fairly weak."

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