European stocks close: stocks closed lower as market participants were disappointed because they hoped for more stimulus measures by the European Central Bank

Stock indices closed lower as market participants were disappointed because they hoped for more stimulus measures by the European Central Bank (ECB). The ECB kept its interest rate unchanged at 0.05%, but lowered its deposit rate to -0.3% from -0.2%. The asset-buying programme will be extended until the end of March 2017. Earlier, the asset buying programme was intended to run until September 2016. The volume of the monthly purchases remained unchanged.

Meanwhile, the economic data from the Eurozone was weaker than expected. Markit Economics released final services purchasing managers' index (PMI) for the Eurozone on Thursday. Eurozone's final services purchasing managers' index (PMI) increased to 54.2 in November from 54.1 in October, down from the preliminary reading of 54.6.

The index was driven by arise in business activity rise across the countries.

Eurozone's final composite output index rose to 54.2 in November from 53.9 in October, down from the preliminary reading of 54.4.

"With the exception of France, growth rates are moving higher, but the ECB's concerns over price stability are given further credence by the survey showing average prices charged for goods and services dropping for a second successive month. As yet, it seems faster growth is not showing any signs of generating inflation," Chief Economist at Markit Chris Williamson said.

He added that the Eurozone's economy is likely to grow at 0.4% in the fourth quarter.

Germany's final services purchasing managers' index (PMI) rose to 55.6 in November from 54.5 in October, in line with the preliminary reading.

France's final services purchasing managers' index (PMI) dropped to 51.0 in November from 52.7 in October from 51.9 in September, down from the preliminary reading of 51.3.

Eurostat released its retail sales data for the Eurozone on Thursday. Retail sales in the Eurozone fell 0.1% in October, missing expectations for a 0.2% rise, after a 0.1% decline in September.

The decline was driven by lower food, drinks and tobacco sales and automotive fuel sales.

On a yearly basis, retail sales in the Eurozone climbed 2.5% in October, missing forecasts of a 2.7% gain, after a 2.9% increase in September.

Markit's and the Chartered Institute of Purchasing & Supply's services purchasing managers' index (PMI) for the U.K. rose to 55.9 in November from 54.9 in October, exceeding expectations for a rise to 55.0.

A reading above 50 indicates expansion in the sector.

The increase was driven by a faster growth in new business and a moderate rise in backlogs.

"A welcome upturn in service sector expansion helped counter slower growth in manufacturing and construction in November, suggesting the UK continues to enjoy the 'Goldilocks' scenario of solid economic growth and low inflation," the Chief Economist at Markit Chris Williamson said.

He added that the U.K. economy is likely to expand 0.6% in the fourth quarter of 2015.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,275 -145.93 -2.27 %

DAX 10,789.24 -400.78 -3.58 %

CAC 40 4,730.21 -175.55 -3.58 %