European Stocks. First hour: Indices decline after yesterday’s rally

European stocks decline in early trading after rallying yesterday. Concerns over Greece weigh. The new Greek government yesterday retreated from a plan for a write-off of its debt and proposed a new debt arrangement to reach a compromise with its international creditors on the terms of its bailout. Yesterday Finance Minister Varoufakis reassured in London that Greece is not seeking a standoff with the European Union.

France and Germany, the biggest economy in the Eurozone, reported final data on Services PMI for January. France's PMI came in at 49.3, below estimates of 49.5 declining 0.2 point from the previous period. German Services PMI rose more-than expected from 52.7 to 54.0 in January. In December the index came in at 52.7.

Eurozone's Service PMI was above estimates with a reading of 52.7 compared to 52.3.

Later in the day U.K's Purchasing Manager Index will be in the focus at 09:30GMT followed by Eurozone's Retail Sales at 10:00 GMT. Later market participants await U.S. data on the ADP Unemployment Report, Services PMI and the ISM Non-Manufacturing.

The commodity heavy FTSE 100 index is currently trading -0.21% quoted at 6,857.66 points. Germany's DAX 30 declined by -0.28% trading at 10,860.41. France's CAC 40 lost -0.04%, currently trading almost flat at 4,676.10 points.