European share prices steadied at seven-year highs Tuesday with stock-market investors unperturbed by a potential showdown between Greece's new government and its international creditors.

In contrast, nervousness persisted on Greek financial markets, with the country's government bond yields extending the previous day's rise. Athens' main stock index fell 0.3%.

Shares elsewhere in Europe had climbed to a fresh postcrisis peak on Monday despite the election of the left-wing Syriza party in Greece, and its choice of a right-wing coalition partner that shares little apart from a vehement antiausterity stance.

Markets steadied on Tuesday, with the Stoxx Europe 600 benchmark index little changed in early trading.

The coming negotiations between the Syriza government and the so-called Troika of lenders has left many investors nervous. But last week's announcement of a bond-buying stimulus program from the European Central Bank, which drove stocks sharply higher, has underpinned an overall bullish mood.

With Greece's economy and financial system dependent on external funding, a compromise deal over the country" outstanding debts is the most likely outcome of the talks between the new government and its creditors, said Lucy O'Carroll, chief economist at Aberdeen Asset Management.

"The gap between Syriza and the Troika is wide, however, and the path toward agreement remains unclear. Against this background, markets are likely to remain nervous, though QE may provide comfort meanwhile," she said.

The euro, which briefly touched an 11-year low after Sunday's Greek election results, continued to bounce back, rising 0.6% against the dollar to $1.1321.

Gains were even sharper against the Swiss franc, which fell more than 1% against the common currency. The move came after Swiss National Bank's Vice President Jean-Pierre Danthine told a Swiss newspaper that the central bank remains ready to intervene in the currency market.

Elsewhere in currency markets, the Russian ruble steadied after Monday's heavy decline which came after Standard & Poor's cut the country's credit rating to junk. The ruble gained 0.7% to trade at around 68 to the dollar, but remains close to its all-time low.

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