The FTSE shed seven points (-0.1%) settling at 5885, whilst the French CAC added just three points and the German DAX shed six.
European shares recovered in late trade after Greek government sources said that the country had agreed with international lenders on how to achieve budget cuts worth 325 million euros.
Stateside, the Dow Jones added 123 points (+1%), to settle a 12904, whilst the S&P advanced 1.1% and the Nasdaq jumped 1.5%.
New claims for unemployment insurance in the US fell by 13,000 to 348,000 in the latest week – the lowest level since March 2008.
US housing starts rose by 1.5% in January to a 699,000 annual rate – up from an upwardly-revised December result and above expectations near 675,000. US producer prices rose by 0.1pct in January with the core rate up 0.3pct.
The Aussie dollar rallied in line with equity market, moving back above the US$1.07 handle, whilst the euro rose as a report that the European Central Bank is exchanging Greek bonds for new securities bolstered speculation the nation will get its second bailout.
Oil continued to rise, adding another 51 cents to settle at US$102.31 a barrel as hopes that EU leaders would agree to a Greek bail-out package drove equities and commodities higher.
Base metals were weaker with tin and aluminium faring worst while copper fell only modestly. Gold rose slightly, adding 0.1% to settle at US$1730 an ounce.
In company news, ANZ has announced an almost 7% rise in quarterly cash profit to $1.5 billion. The bank also warned of rising funding costs, which squeezed its margins during the quarter.
Billabong, Spotless and Santos are amongst the other companies reporting earnings today.
There is no major local economic data due out for today’s session.