LONDON (TheDeal) -- European stock markets declined Tuesday on Greek debt worries even as better-than-expected eurozone consumer price data suggested a government bond-buying program by the bloc's central bank has chased away the specter of a prolonged period of Japanese-style deflation.
Late morning comments by Greek Prime Minister Alexis Tsipras helped indices pare losses as he declared that he had made "a comprehensive proposal" to Greece's international creditors about a solution to the debt impasse. The comments followed a hastily convened crisis summit on Monday night attended by the leaders of the International Monetary Fund, France, Germany, the European Commission and the European Central Bank.
Meanwhile, inflation returned to the eurozone in May, with consumer prices rising 0.3% year-on-year, after stagnating a month earlier. But April producer prices, also from the European Union's statistics arm, came in weaker than expected, indicating further deflationary pressures down the road.
In London, the FTSE 100 was down 0.80% at 6,897.91. In Frankfurt, the DAX was down 0.76% at 11,349.11, and in Paris, the CAC 40 slipped 0.44% to 5,003.01.
British American Tobacco (BTI) tumbled in London and Japan Tobacco (JAPAF) sank in Tokyo after a Canadian court ordered the companies and Philip Morris International (PM) to pay C$15.6 billion ($12.5 billion) to two groups of smokers following a 10-year lawsuit. The companies say they are planning to challenge the ruling.