By Simon Miller

Markets are cautiously optimistic that the Greek bond swap deal will proceed tonight.

With major banks - totalling around 57% of the €200bn debt - agreeing to the deal, the FTSE 100, Euro Stoxx 50 and CAC40 all opened slightly up in the hope that the swap will be completed with over 75% of participants' agreement.

The latest statement from the Institute of International Finance - which is representing private debt holders - said Barclays, RBS and HSBC had joined the deal, bringing the number of banks participating to 32.

However, with the Greek Debt Management Agency warning that it will force collective action clauses (CAC) on unwilling participants, doubts remain over how much of the swap deal is in Greek-law bonds as €23bn of bonds are icovered by English or international law.

TEH FTSE 100 was up by 63.43 at 5,854.84, while the CAC 40 was up 58.71 at 3,451.04 and the Euro Stoxx 50 was at 2,496.74 - 35.97 points up (09.44GMT).

The deadline for the swap deal is at 20.00GMT.

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