Euro, European stocks lower as Greece-inspired gains fade; Iran deal weighs

On Tuesday the European currency and stocks pulled back from Greece-inspired gains.

The Stoxx Europe 600 shed 0.4% at 394.98, in part as the energy group tracked a nearly 2% drop in oil prices. The fall came as top officials said a nuclear deal has been concluded between Iran, the U.S. and five other world powers after weeks of negotiations.

The pressure on oil prices stems from expectations that Iranian oil exports will double while the market is already flooded with oil. Among oil producers, Tullow Oil PLC  fell 2.2%, Austria’s OMV AG lost 1.5% and Portugal’s Galp Energia dropped 2.1%.

Germany's DAX 30 dipped 0.3% to 11,44.77.

In Paris, the CAC 40 lost 0.2% at 4,991.06.

Spain’s IBEX 35 dropped 0.3% to 11,181.40, and Italy’s FTSE gave up 0.7% to 23,009.37.

The U.K.’s FTSE 100 was fractionally lower at 6,737.55. 

In Greece, stock market as well as banks remain closed.

On Tuesday Greek Prime Minister Alexis Tsipras was to meet with MP's, but faced an opposition to win support for a third bailout deal offered by the creditors.

Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.

The possibility of a potential third bailout for Greece eased concerns over a possible exit from the euro area and prompted investors to refocus on economic weakness in the single currency bloc, also pushing the shared currency lower. The euro was last at $1.1033.

Credit Suisse analyst Andrew Garthwaite wrote in a note that despite the deal, the bank continues to place a 30% probability of a Grexit over the next year. That is partly due to the challenge Greece faces in implementing the measures, he said.