2026.01.2816:47:12UTC+00European Stocks Close Lower

European stock markets witnessed notable declines by the close of trading on Wednesday, primarily driven by significant losses in the luxury and pharmaceutical sectors following key earnings announcements. The Eurozone's STOXX 50 index decreased by 0.9% to settle at 5,940, while the broader STOXX 600 across Europe fell by 0.7% to reach 609 points. LVMH experienced a substantial drop of 7.3% due to results that fell short of expectations, weighing heavily on the luxury sector. CEO Bernard Arnault highlighted a challenging business environment and cautioned that 2026 might present further difficulties. Hermes similarly responded to the sector's cautionary outlook, seeing a decline of nearly 3%. In parallel, Bayer and Argenx both saw declines exceeding 3%, erasing gains from the previous day. Furthermore, ASML concluded the session 1.7% lower, despite an earlier surge of up to 7.5% following robust fourth-quarter order figures that surpassed forecasts. The focus of investors now shifts to the US Federal Reserve's impending policy announcement, with widespread anticipation that interest rates will be held steady.