European shares rose on Tuesday, buoyed by corporate earnings optimism, while concerns over Greece's parlous fiscal situation weighed on the euro.
Investors anticipated strong numbers from Goldman Sachs Group Inc , which deflected attention away from the U.S. Securities and Exchange Commission's fraud charge against it.
Sentiment was also lifted by Citigroup reporting its best results since 2007 on Monday, while German carmaker Daimler doubled its profit outlook, helping to lift European equities.
Q1 earnings are coming through on balance better than expected with strong results from Daimler in Europe and Citigroup , and there is a bit of relief on Goldman Sachs , said Bernard McAlinden, investment strategist at NCB Stockbrokers.
The FTSEurofirst 300 index <.FTEU3> of major European shares rose 0.7 percent, while the MSCI world equity index gained 0.3 percent.
Emerging stocks <.MSCIEF> rose 0.9 percent.
GREECE CONCERNS; OIL GAINS
Persistent concerns about Greece's fiscal health weighed on the euro, which dipped 0.1 percent against the dollar.
The Wall Street Journal reported that European Central Bank Governing Council member Axel Weber said Greece may require assistance of up to 80 billion euros.
Greece has yet to ask for activation of the EU/IMF aid safety net agreed earlier this month, estimated at 45 billion euros in the first year.
No one believe that initial amount would be enough to cover Greece's funding needs, said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
Against a basket of currencies, the dollar <.DXY> was down 0.1 percent, with gains against the euro offset by falls against risk-sensitive currencies such as sterling and the Australian dollar.
Oil prices rebounded from three-week lows as jet fuel demand increased, with European planes taking back to the skies after a threat from ash spewed by a volcano in Iceland receded.
U.S. crude oil rose 74 cents to $82.18 per barrel, having fallen almost 5 percent in the previous two trading sessions.
Flights from large parts of Europe were set to resume under a deal agreed by the European Union to free up airspace closed after the volcano erupted last week.
The disruption cut global jet fuel use by about 20 percent in the past few days.
German Bund futures dipped 9 ticks, while euro zone 10-year yields were slightly lower, with bond market players edgy about Greece's fiscal situation.
(Additional reporting by Harpreet Bhal and Tamawa Desai; editing by Stephen Nisbet)