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London - European stocks diverged in cautious deals on Friday, despite gains across most of Asia, as investors mulled growing optimism over Greece ahead of the weekend.
London's benchmark FTSE 100 index of major blue-chip companies dipped 0.11% to 6 789.10 points in midday deals.
Frankfurt's DAX 30 shed 0.23% to 11 689 points while the CAC 40 in Paris rose 0.11% to 5 126.90 compared with Thursday's close.
In foreign exchange deals, the euro firmed to $1.0896 from $1.0875 late on Thursday in New York.
Markets had advanced Thursday after Greek lawmakers voted in favour of an austerity-laden bailout package and the European Central Bank (ECB) increased emergency funding to Greece's teetering banks.
On Friday, chancellor Angela Merkel made an impassioned plea to German lawmakers to back a new Greece bailout deal that conforms to EU rules and prevents "chaos" in the crisis-hit country.
Merkel, like Greece's hard-left Prime Minister Alexis Tsipras, faces rebels in her own party ranks, but was ultimately expected to win approval from the chamber where her "grand coalition" commands an overwhelming majority.
"The German parliament is yet to ratify the outline basis for the Greek bailout deal and judging by the comments coming from German finance minister Wolfgang Schaeuble in the run-up to today, we can expect some choice phraseology in what will no doubt be a lively debate," said IG analyst Alastair McCaig.
Addressing the Bundestag, Merkel said a new €86bn rescue package was the way forward and that "we would be grossly negligent, indeed acting irresponsibly if we did not at least try this path."
Merkel and her hardline Finance Minister Wolfgang Schaeuble have been harshly criticised for forcing more austerity on Greece, using the threat of a five-year euro "time-out" that had been floated by Schaeuble.
"Schaeuble... said this is the last chance to deal with the 'difficult task' of Greece, giving an impassioned speech that urged the Bundestag to give Berlin the mandate to start bailout negotiations, striking a tone that was at odds with his normally bearish (and some would say Grexit-seeking) attitude towards Greece," added Spreadex analyst Connor Campbell.
Across in Asia on Friday, markets mostly rose after the ECB boosted emergency Greek aid and eurozone chiefs agreed a bridging loan to the country.
Hong Kong and Shanghai stocks meanwhile rallied as fears over a renewed mainland rout eased.
Buying was also given a bump by a record close on Wall Street, where investors were cheered by upbeat earnings, easing Greek fears, and a stabilisation of China's markets after a month of plunges.
Tokyo rose 0.25% to 20 650.92, marking a five-day winning streak.
Shanghai jumped 3.51% in value. The index has now risen for two straight weeks, clawing back some of the huge losses suffered in just under a month after hitting a June 12 peak. Hong Kong stocks won 1%.
