European shares gain on Greek rescue deal

(Reuters) - European shares rose Friday on track for the fourth straight session of gains after a new Greek rescue package was agreed the day before and the financial rescue fund was given broader powers to help prevent contagion in the region.

Banks which have recently been battered by the sovereign debt crisis were the stand out gainers, continuing their rise from the previous session, with the STOXX Europe 600 Banks index .SX7P up 2.1 percent.

"It is encouraging they have come up with something and dealt with some of the restructuring," Louise Cooper, markets analyst at BGC Partners. "The markets have got excited about it."

"But the cuts to Greek debt does not put the country on a sustainable footing for growth and does not take us where we want to be."

By 0708 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.6 percent at 1,109.56 points and is on track to end the week 1.8 percent higher after two-weeks of losses. (Reporting by Joanne Frearson)