European stocks close lower; FTSE 100 down 1.5% after UK inflation unexpectedly picks up

This is CNBC's live blog covering European markets.

European markets closed lower on Wednesday, while regional focus remained on the World Economic Forum in Davos, Switzerland.

The Stoxx 600 index ended down 1.1%, with all sectors and major bourses in negative territory. Mining stocks led the losses, closing the session 2.1% lower.

Britain's FTSE 100 index fell 1.5% after U.K. inflation unexpectedly nudged upwards to 4% year-on-year in December.

The Bank of England will hold its next monetary policy meeting on Feb. 1 after hiking interest rates rapidly over the past two years in a bid to tame runaway inflation.

Of note on Wednesday are special addresses by Secretary-General of the United Nations António Guterres, Argentinian President Javier Milei, Spanish Prime Minister Pedro Sánchez and French President Emmanuel Macron.

Asia-Pacific markets extended their declines overnight, with Hong Kong leading losses after China's fourth-quarter gross domestic product growth missed estimates.

U.S. stocks inched lower on Wednesday following a losing session to kick off the holiday-shortened trading week. Retail sales data for December came in stronger-than-expected, indicating a resilient consumer and putting aggressive rate cuts from the Federal Reserve into doubt.

European stocks closed 1.1% lower on Wednesday, with all sectors and major bourses ending in negative territory.

Britain's FTSE 100 index ended the session down around 1.5% after U.K. inflation unexpectedly picked up to 4% year-on-year in December.

— Sam Meredith

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