Europe closes lower with concerns over Greek deal

Europe closes lower with concerns over Greek deal
Europe closes lower with concerns over Greek deal   

European stock markets closed lower on Wednesday, as investors focused on the unfolding negotiations surrounding Greece's debt problems.

The French CAC ended the day around 0.2 percent lower, while the German DAX closed 0.6 percent lower, after German IFO data was released. The London FTSE 100 index however bucked the trend, finishing the day 0.1 to 0.2 percent higher.

Greek hopes fade


The pan-European Euro Stoxx 600 Index ended the day 0.4 percent lower, despite opening the session higher. At around 10.30 a.m. London time, a Greek official told reporters that the government's proposed measures had not been accepted by its international creditors. Greek stocks sank, closing 1.8 percent lower.

U.S. stocks traded in narrow range on Wednesday as discouraging developments in the Greece debt talks weighed on investor sentiment, amid domestic data.

Read MoreWhy investors should care about Greece: Expert

On Tuesday evening, Greece's government seemed confident of getting a debt deal with lenders through parliament, despite protests by left-wing groups in Athens and anger from some of its own members. Protesters and hard-line members of the Syriza party object to perceived concessions towards austerity in the government's deal with its international creditors.

A meeting of the Eurogroup of euro zone finance ministers to discuss the revised crisis plan is due to start Wednesday evening.

Read MoreLatest on Greece: Deal in doubt, deadline looms

German IFO released

On the data front, Germany's closely watched Ifo Business Climate survey indicated that business morale fell in June. The index for the country came in at 107.4 for the month, below expectations of 108.1.

"June's fall in Germany's Ifo Business Climate Indicator suggests that worries about Greece may be weighing on the euro-zone's largest economy," James Howat, European economist at Capital Economics, said in a note. He added that if Greece's crisis deepens, "the economy may even lose steam."

Meanwhile, official statistics confirmed that French gross domestic product (GDP) rose 0.6 percent in the first quarter.

Bouygues; Delhaize shares fall

In individual stocks news, shares of France's telecoms sector were in focus after France's Bouygues rejected a10-billion-euro ($11.2 billion) offer for its telecom unit from Altice, Reuters reported. Bouygyes fell near the bottom of indexes, closing around 9.3 percent lower, while Altice stock fell by 4.8 percent.

Elsewhere, Dutch-based supermarkets operator Ahold said it was going to buy Belgian rival Delhaize. Shares in Ahold, which will take a 61 percent stake in the new company pared earlier gains, closing 3.7 percent lower. Delhaize Group shares ended over 7.6 percent lower.

Read MoreAhold and Delhaize announce intention to merge

Swiss bank Julius Baer shares rose, closing at the top of benchmarks at 3.3 percent, on hopes that it was nearing an agreement with U.S. regulators. Late on Tuesday, it agreed to take a $350-million charge in the first half over an investigation into allegations it helped clients evade taxes.

Meanwhile, shares in AIM-listed Quindell were temporarily suspended after the U.K.'s Financial Conduct Authority said it had begun an investigation into the company.

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