European stocks close: stocks closed lower as bank shares declined

Stock indices closed lower as bank shares declined.

Mixed services purchasing managers' index (PMI) from the Eurozone and the U.K. also weighed on markets. Eurozone' final services PMI fell to 51.6 in December from a preliminary reading of 51.9. Analysts had expected the final index to remain at 51.6.

Germany's final services PMI remained rose to 52.1 in December from a preliminary reading of 51.4. Analysts had expected the final index to remain at 51.4.

France's final services PMI increased to 50.6 in December from a preliminary reading of 49.8. Analysts had expected the final index to remain at 49.8.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

Markets also remained under pressure due to political uncertainty in Greece. There is speculation that Greece could leave the Eurozone. Greeks will elect new parliament later this month. If a left-wing government wins Greek parliament elections, it may cancel austerity measures and may renegotiate Greece's debt.

The U.K. services PMI dropped to 55.8 in December from 58.6 in November, missing expectations for a rise to 58.9.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,366.51 -50.65 -0.79%

DAX 9,469.66 -3.50 -0.04%

CAC 40 4,083.5 -27.86 -0.68%