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Paris - Eurozone shares have snapped a three-day losing streak, taking their lead from gains on Wall Street after some stronger-than-expected consumer spending data from the United States.
Greek shares fell for a third day, however, as upcoming presidential elections sparked fears of political instability that could send the country back into crisis.
If Prime Minister Antonis Samaras fails to secure victory for his presidential candidate, snap national elections would be called which the leftist Syriza party, an opponent of Greece's bailout deal with the European Union and IMF, would likely win.
"The market is pricing in that this political uncertainty will slow down the economic recovery," Natasha Roumantzi, head of analysis at Piraeus Securities in Athens, said.
No political solution
"If there is no indication that there will be a political solution, then stocks will fall further."
The Athens General Composite index of Greek stocks closed 7.4% lower, taking its fall this week to 20%.
Most other eurozone indices turned higher in late trade in response to the US data which showed consumer spending advancing at a brisk clip in November, with lower gasoline prices giving the holiday shopping season a boost.
The Euro STOX 50 index of eurozone blue chips closed 0.3% higher at 3 159.11 points while the pan-European FTSEurofirst 300 was flat at 1 357.43 points.
Further slide
The FTSEurofirst 300 had fallen 3.4% in the previous three sessions as worries about Greece and a slump in commodity prices dented investor appetite for assets which depend on global growth.
Among individual movers, Airbus fell 4.3%, adding to a 10% drop in the previous session after the plane maker predicted flat profits in 2016. That surprised investors who had expected new and recently upgraded models to start boosting results that year.
Zara owner Inditex bucked the trend, gaining 4.2% after posting in-line earnings.
Shares in CGG tumbled 11.2% after a media report said the French government had doubts about a potential tie-up with rival Technip. Technip shares gained 3%.
