* FTSEurofirst 300 index up 0.6 percent
* Greek shares hit 2016 peak on debt relief offer
* Jeweller Pandora raises forecast, stock soars
* Credit Suisse jumps on smaller-than-expected loss (ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). Adds details, Updates prices)
By Atul Prakash and Danilo Masoni
LONDON/MILAN, May 10 (Reuters) - European shares rose on Tuesday, lifted by news of progress on Greek debt talks, with Danish jeweller Pandora surging after strong results and Credit Suisse gaining after a smaller-than-expected loss.
The FTSEurofirst 300 index was up 0.6 percent by 1423 GMT, while Greek shares rose 3.1 percent to their higest level this year after euro zone finance ministers offered to grant Greece some debt relief.
Earnings reports set the tone of the market, with Pandora up more than 10 percent after reporting a bigger-than-expected rise in first-quarter operating profit on strong sales growth and raising its full-year forecast.
“The main positive takeaway is the early upgrade of full-year expectations,” Nordea analyst, Patrik Setterberg, said.
Credit Suisse was up 4.3 percent. Although it saw tough market conditions continuing at least through the second quarter, it posted a lower-than-expected loss of 302 million Swiss francs for the first quarter.
“This was easily the most shorted name heading into numbers and the market was fearing capital may have moved materially in the wrong direction. The fact that it was flat ... means a classic ‘not as bad as feared’,” a trader said.
British outsourcing group Capita rose 5.4 percent after saying it was increasingly confident it would grow organic revenue by at least 4 percent this year.
The first quarter earnings season is entering into its last phase. According to Thomson Reuters StarMine, nearly 70 percent of European companies have announced results so far, of which 60 percent have met or beaten analysts’ forecasts.
On the downside, France’s Natixis fell 7.3 percent after saying it was looking at ways to boost efficiency as investment banking weakness led to a 30-percent fall in first-quarter net income.
Italian lender UniCredit fell 1.7 percent after posting a slight decline in its core capital.
German industrial group Thyssenkrupp fell 0.8 percent after cutting its full-year forecasts on a drop in prices for materials including steel that it said was sharper and longer-lasting than it had expected.
Today’s European research round-up
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Mike Dolan, Markets Editor EMEA. (Editing by Louise Ireland)