European stocks close: stocks closed lower as oil prices dropped again

Stock indices closed lower as oil prices dropped again. Oil prices fell on concerns over the global oil oversupply.

Meanwhile, the economic data from the Eurozone was mixed. Eurostat released its unemployment data for the Eurozone on Tuesday. Eurozone's unemployment rate declined to 10.4% in December from 10.5% in November. It was the lowest reading since September 2011.

Analysts had expected the unemployment rate to remain unchanged at 10.5%.

The lowest unemployment rate in the Eurozone in December was recorded in Germany (4.5%) and Malta (5.1%), and the highest in Greece (24.5% in October 2015) and Spain (20.8%).

Eurostat released its producer price index for the Eurozone on Tuesday. Eurozone's producer price index declined 0.8% in December, missing expectations for a 0.6% fall, after a 0.2% decrease in November.

Intermediate goods prices fell 0.3% in December, capital goods prices were flat, non-durable consumer goods prices declined 0.1%, and durable consumer goods prices were stable, while energy prices decreased 2.7%.

On a yearly basis, Eurozone's producer price index dropped 3.0% in December, missing expectations for a 2.8% decrease, after a 3.2% fall in November.

Eurozone's producer prices excluding energy fell 0.7% year-on-year in December. Energy prices dropped at an annual rate of 9.0%.

The Federal Labour Agency released its unemployment figures for Germany on Tuesday. The number of unemployed people in Germany fell by 20,000 in January, exceeding expectations for a 7,000 decline, after a 16,000 decrease in December. December's figure was revised up from a 13,000 decline.

The unemployment rate declined to 6.2% in January from 6.3% in December. Analysts had expected the unemployment rate to remain unchanged at 6.3%.

Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. dropped to 55.0 in January from 57.8 in December, missing expectations for a decrease to 57.5. It was the lowest level since April 2015.

A reading above 50 indicates expansion in the construction sector.

The index was driven by a softer growth in new business, while the employment rose was at the weakest pace since September 2013.

Indexes on the close:

Name Price Change Change %

FTSE 100 5,922.01 -138.09 -2.28 %

DAX 9,581.04 -176.84 -1.81 %

CAC 40 4,283.99 -108.34 -2.47 %