European stocks close: stocks closed lower as the Greek debt problem weighed on markets

Stock indices closed lower as the Greek debt problem weighed on markets. The head of the Eurogroup Jeroen Dijsselbloem said on Tuesday that the progress in debt talks between Greece and its creditors would not be enough to sign an agreement this week.

"As long as it doesn't meet economic conditions, we can't come to an agreement. It's not right to think that we can meet half way," he noted.

Dijsselbloem believes that a deal between Greece and its creditors could be reached.

Earlier, Greek Prime Minister Alexis Tsipras said that the government had submitted realistic proposals to its lenders. He added that the decision rests on the European Union's leaders.

In total, Athens has to repay almost €1.6 billion in June, starting with repayment of €300 million on Friday.

The preliminary consumer price inflation in the Eurozone rose to an annual rate of 0.3% in May from 0.0% in April, exceeding expectations for a 0.2% gain. It was the first positive reading since November 2014.

The preliminary consumer price inflation excluding food, energy, alcohol, and tobacco increased to an annual rate of 0.9% in May from 0.6% in April, beating expectations for a decline to 0.1%.

The number of unemployed people in Germany declined by 6,000 in May, missing expectations for a 10,000 decline, after a 9,000 drop in April. April's figure was revised up from a 8,000 fall.

The number of unemployed people in Germany was 2.786 million in May, the lowest level since December 1991.

Germany's adjusted unemployment rate remained unchanged at 6.4% in May, in line with expectations.

Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. increased to 55.9 in May from 54.2 in April, exceeding expectations for a rise to 55.0.

A reading above 50 indicates expansion in the construction sector.

The increase was driven by a rise in new orders, which grew for the first time in three months.

Residential building activity rose in May, commercial construction slowed to the lowest level since August 2013, while civil engineering work grew.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,928.27 -25.31 -0.36 %

DAX 11,328.8 -107.25 -0.94 %

CAC 40 5,004.46 -20.84 -0.41 %