Greek Prime Minister Alexis Tsipras was prepared to accept creditors' demands for a bailout with only a few minor changes, the Financial Times said.
The FTSEurofirst 300 extended gains, up 1.5 pct, with the euro zone blue-chip Euro STOXX up 2.1 percent.
The euro trimmed losses against the dollar to trade at $1.11535, flat on the day, while against the British pound it turned higher to trade 0.4 percent higher on the day.
German 10-year yields rose 4.3 basis points to a day's high of 0.82 percent while Spanish, Italian and Portuguese equivalents fell 6-8 bps to 2.22 percent, 2.25 percent and 2.90 percent, respectively.
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