European stocks close: stocks closed lower as debt talks between Athens and its creditors were broken down

Stock indices closed lower as debt talks between Athens and its creditors were broken down. Greek Prime Minister Alexis Tsipras called for a referendum on Saturday morning. The Eurogroup has not agreed to extend the Greek bailout programme.

The referendum is scheduled to be on July 05. Greeks will be asked to vote if they want to accept the aid proposal by the country's creditors.

Greece's parliament approved a referendum on yearly Sunday.

The Greek government Sunday announced its decision to shut the country's banks and to impose capital controls to avert the collapse of its financial system. Banks will be closed until July 06.

Daily cash withdrawals has been limited to 60 euros and payments and transfers abroad has been banned.

Greek Prime Minister assured Greeks that their bank deposits were safe.

Stock exchange in Greece also remains closed.

Meanwhile, the economic data from the Eurozone was weaker than expected. German preliminary consumer price index fell 0.1% in June, missing expectations for a 0.1% gain, after a 0.1% rise in May.

On a yearly basis, German preliminary consumer price index declined to 0.3% in June from 0.7% in May, missing expectations for a decrease to 0.5%.

The European Commission's economic sentiment index for the Eurozone declined to 103.5 in June from 130.8 in May. Analysts had expected the index to remain unchanged at 103.8.

The decline was driven by a fall in confidence in industry and in retail trade. The industrial confidence index decreased to -3.4 in June, while the index for retail trade declined to -1.1 in from 1.5.

The Bank of England (BoE) released its number of mortgages approvals for the U.K. on Tuesday. The number of mortgages approvals in the U.K. fell to 64,434 in May from 67,580 in April, missing expectations for an increase to 68,700.

The BoE introduced tighter rules on mortgage lending last year. Lenders have to make more checks on whether borrowers can afford their loans.

Consumer credit in the U.K. climbed by £1.001 billion in May, after a rise by £1.176 billion in April.

Net lending to individuals in the U.K. increased by £3.1 billion in May, after a £2.9 billion gain in April.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,620.48 -133.22 -1.97 %

DAX 11,083.2 -409.23 -3.56 %

CAC 40 4,869.82 -189.35 -3.74 %