(MENAFN- AFP) Athens stocks fell on Tuesday following the collapse of Greek bailout talks, while Europe's main markets showed "resilience" as traders reacted also to mixed European data.
Athens' main index tumbled 2.12 percent to 841.49 points, while London's benchmark FTSE 100 index rose 0.39 percent to stand at 6,884.12 points around midday in the British capital.
Frankfurt's DAX 30 slipped 0.20 percent to 10,900.95 points and the CAC 40 index in Paris was flat at 4,751.58 compared with Monday's close.
The euro gained to $1.1395 from $1.1355 late in New York on Monday, after the hard-left government in Athens refused a demand by eurozone partners that it apply for an extension to its EU bailout.
The yield on Greece's 10-year bonds -- a common indicator of market sentiment -- was largely steady on Tuesday at 9.554 percent against 9.653 percent the previous night.
"European stocks have turned mixed after a weaker start," noted Fawad Razaqzada, analyst at dealers Forex.com.
"The resilience of the markets suggests investors are confident that a (Greek) deal will eventually be reached, perhaps as soon as this week."
Greece and its eurozone partners raced to scrape together a last minute debt deal for Athens on Tuesday and avoid a Greek exit from the single currency bloc a day after talks ended bitterly.
Eurogroup head Jeroen Dijsselbloem, who is also Dutch finance minister, on Monday gave an isolated Greece 48 hours to request the extension to the bailout programme that expires at the end of the month, a demand that Athens bitterly refuses.
The chaos surrounding the debt talks alarmed analysts, with economists at Commerzbank now predicting that a Greek exit from the euro was 50 percent likely, up from 25 percent.
Despite the high tensions, investor sentiment in Germany is at it highest level in 12 months, buoyed by the feel-good effects of the European Central Bank's latest policy moves and positive growth figures, data showed on Tuesday.
The widely watched investor confidence index calculated by the ZEW economic institute rose by 4.6 points to 53.0 points in February, its highest level since February 2014, ZEW said in a statement.
"Over in the economic nightmare some call the eurozone, things are looking ever so slightly brighter, as Germany's ZEW economic sentiment hit a 12 month high, whilst the overall figure for the region also beat expectations, allowing the eurozone (stock) indices some breathing room to grow," said Connor Campbell, analyst at Spreadex trading group.
In Britain, the annual inflation rate slowed to a record low of 0.3 percent in January on the back of plunging oil prices and lower food costs.
Inflation in Britain could meanwhile turn negative within months and interest rates cut, Bank of England governor Mark Carney said last week, signalling fresh risks to the economy before the country's election.
While a sustained period of falling prices may sound good for consumers, deflation can trigger a vicious spiral in which businesses and households delay purchases, throttling demand and causing companies to lay off workers.
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