European stocks close: stocks closed lower as shares of automakers dropped

Stock indices closed lower as shares of automakers dropped, caused by the Volkswagen emissions scandal.

European Central Bank (ECB) Governing Council member Erkki Liikanen said on Thursday that the central bank could adjust its asset-buying programme if needed.

Liikanen pointed out that the slowdown in the global economy involves risks for the recovery in the Eurozone, adding that inflation in the Eurozone could rise slower than expected.

Meanwhile, the economic data from the Eurozone was mostly positive. German Ifo Institute released its business confidence figures for Germany on Thursday. German business confidence index rose to 108.4 in September from 108.3 in August, beating expectations for a decline to 108.0.

"The German economy is proving robust. In manufacturing the business climate continued to deteriorate slightly. Manufacturers scaled back their very good assessments of the current business situation, but were nevertheless more optimistic about short-term business developments. More companies plan to ramp up production in the months ahead," Ifo President Hans-Werner Sinn said.

The Ifo current conditions index declined to 114.0 from 114.8. Analysts had expected the index to fell to 114.7.

The Ifo expectations index rose to 103.3 from 102.2. Analysts had expected the index to decrease to 101.5.

The French statistical office Insee released its manufacturing confidence index for France on Thursday. The French manufacturing confidence index increased to 104 in September from 103 in August. It was the highest level since August 2011.

The British Bankers' Association (BBA) released the number of mortgage approvals in the U.K. on Thursday. The number of mortgage approvals increased to 46,743 in August from 46,315 in July. It was the highest reading since February 2014.

"Mortgage borrowing continues to pick up. The August increase is the largest in five years, although borrowing is still some way below pre-crisis levels," the chief economist at the BBA, Richard Woolhouse, said.

Indexes on the close:

Name Price Change Change %

FTSE 100 5,961.49 -70.75 -1.17 %

DAX 9,427.64 -184.98 -1.92 %

CAC 40 4,347.24 -85.59 -1.93 %