A report in the Financial Times said Eurozone countries are divided over the terms of Greece's second 109 billion euros bailout deal with a number of member countries demanding private creditors to share a bigger writedown on their Greek bond holdings.
As many as seven of the bloc's 17 members are now asking the private creditors to share the burden amid concerns that Athens' funding needs have grown beyond the previous estimates made just two months ago, the report said quoting senior European officials.
German Chancellor Angela Merkel said she is awaiting a report from Troika on the progress made by Greece in cutting its budget deficit, before deciding whether the July 21 deal need to be renegotiated or not, reports said. Citing her interview with the Greek state television NET, reports said this suggested a possible revision to the second bailout package agreed at the July 21 summit.
Meanwhile, Greek Finance Minister Evangelos Venizelos Tuesday promised "superhuman" efforts to meet the deficit targets agreed under the international bailout deal. "We have taken very tough decision and these have huge political and social costs," he said in a press conference ahead of a Parliamentary vote on the highly unpopular property tax.
European Commission has reportedly confirmed that the Troika of international lenders will retun to Greece on Thursday.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.79 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is rising 0.42 percent.
The German DAX is adding 0.57 percent and the French CAC 40 is rising 0.02 percent. The UK's FTSE 100 is falling 0.13 percent and Switzerland's SMI is advancing 0.45 percent.
Among the DAX components, truckmaker MAN is falling 4.4 percent. Volkswagen is losing 1.6 percent. BMW is flat, while Daimler is moderately higher.
Commerzbank is losing 3 percentand Deutsche Bank is falling 1.8 percent. ThyssenKrupp, HeidelbergCement and Lufthansa are down over 2 percent. MunichRe is down 0.6 percent and Allianz is falling 1.1 percent. Exane raised MunichRe to "Outperform" from "Underperform" and increased its price target on the stock.
K+S is losing 1.5 percent. UBS raised the stock to "Buy" from "Neutral." HSBC cut Demag Cranes to "Underweight" from "Neutral." The stock is down 0.4 percent.
Kloeckner is falling 1.4 percent. JPMorgan cut its price target on the stock. Heidelberger Druckmaschinen is adding 2.5 percent after HSBC raised the stock to "Neutral." Kabel Deutschland is up 0.6 percent. Merrill Lynch increased its price target on the stock.
Krones is falling 3.1 percent. HSBC cut its price target on the stock to 43 euros from 60 euros. Air Liquide is adding 0.2 percent in Paris after JPMorgan raised the stock to "Overweight" from "Neutral."
Loreal is gaining 1.55 percent. Sanofi is adding 1.5 percent. Essilor International, Technip and Danone are notably higher.
Metal fabrication firm Vallourec is declining 4.6 percent. Hotel group Accor is falling 2.9 percent. Lender Societe Generale is retreating 2.9 percent. Credit Agricole and BNP Paribas are moderately lower, while Natixis is adding 0.6 percent.
Renault is falling 2.5 percent and Peugeot is losing 1.3 percent. Goldman Sachs cut Peugeot to "Sell" from "Neutral" and reduced its price target on both stocks.
Axa is falling 1.2 percent. Exane BNP cut its price target on the stock.
In London, Man Group is plunging over 19 percent. The asset manager expects lower profit for its first half of fiscal 2012, reflecting decline in net management fees amid weak investor demand. Icap and Schroeders are falling 3 percent and 2 percent, respectively.
BG Group is adding 3.6 percent, reportedly on a positive broker recommendation. Cairn Energy is falling 2.9 percent. The company announced the abandoning of a well in Greenland. Smiths Group is rising 2.3 percent. The company reported a higher profit for fiscal 2011.
Ashmore Group is adding 2.6 percent. GKN is falling 2.5 percent. Miners Anglo American, Antofagasta, BHP Billiton, Kazhakhmys, Vedanta and Xstrata are in negative territory, while Rio Tinto is flat. Among lenders, HSBC and Barclays are falling 1.5 percent each, while Lloyds Banking and Royal Bank of Scotland are each retreating 1.7 percent.
Clariant is falling 1.6 percent in Zurich. In economic news, Germany's import price inflation slowed more than expected in August, the Federal Statistical Office said. Import price inflation came in at 6.6 percent in August, down from 7.5 percent in July. Economists were expecting the annual rate to ease to 6.7 percent. On a monthly basis, import prices fell 0.7 percent, bigger than the expected drop of 0.3 percent.
The French economy stagnated in the second quarter as initially estimated, final data from the statistical office Insee showed. The Gross Domestic Product remained flat on a sequential basis in the second quarter, following prior quarter's 0.9 percent growth.
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