Europe stocks close lower as earnings disappoint; Philips down 11%

European markets closed lower on Wednesday as investors assessed numerous earnings releases and a hotter-than-expected U.K. inflation print.

The regional Stoxx 600 index ended the session 0.9% lower, further pulling away from Tuesday’s all-time closing high, and marking the index’s biggest daily drop in 2025.

Dutch healthcare technology group Philips dropped 11% after missing sales growth expectations for the fourth quarter amid a double digit decline in China. Analysts at Citisaid the market would also focus on the company’s “underwhelming” guidance for 2025.

Earnings on Wednesday also included BAE Systems, shares of which slipped despite the British defense giant reporting a record order book and higher annual profit. Mining firm Glencore

 was meanwhile 7% lower after posting a 16% year-on-year decline in adjusted earnings in its preliminary annual results.

Europe’s largest lender HSBC earlier on Wednesday reported an annual pre-tax profit of $32.31 billion, marginally missing analysts’ estimates, as the bank’s net interest income declined by $3.1 billion from a year earlier.

The U.K.’s inflation rate rose to 3% in January, above the 2.8% forecast in a Reuters poll, according to data released by the Office for National Statistics (ONS) on Wednesday. Core inflation, excluding energy, food, alcohol and tobacco prices, hit 3.7%, up from 3.2% in the previous month and the highest rate since April 2024.