“The earnings season is in focus for now and there’s a consolidation after the big rally post Greece -- people are taking profits,” said Konstantin Giantiroglou, head of investment advisory and research at Neue Aargauer Bank AG in Brugg, Switzerland. “Some investors are a bit more cautious today seeing the markets have gone up a lot.”

A nine-day winning streak pushed the Stoxx 600 to within 2 percent of its record as Greece and its creditors reached an agreement paving the way for a new bailout and the European Central Bank increased emergency liquidity assistance. The nation reopened its banks on Monday after a three-week shutdown. The Athens Stock Exchange remains closed.

Eoin Treacy's view

Eurozone equities experienced an impressive bounce following the Greek government’s decision to acquiesce to creditor demands not least because it removed some of the uncertainty that has assailed the region’s markets. 

The Euro STOXX Index rallied to break the three-month progression of lower rally highs but has developed a short-term overbought condition in the process. Some consolidation of the gain is now likely and how well it finds support above the early July low near 340 will be an indication of whether demand has returned to dominance beyond the short term.