European stocks extended early losses to closed firmly down on Wednesday amid sharp losses for the luxury and pharmaceutical sectors following major earnings reports. The Eurozone's STOXX 50 fell 0.9% to 5,940 and the pan-European STOXX 600 dropped 0.7% to 609. LVMH sank 7.3% after disappointing results, dragging down the wider luxury industry. CEO Bernard Arnault cited a challenging operating environment and cautioned that 2026 is unlikely to be straightforward. Hermes followed suit on the sector's warning, dropping nearly 3%. In turn, Bayer and argenx lost over 3% each to trim yesterday's gains. Meanwhile, ASML closed 1.7% lower after having surged as much as 7.5% in the session after fourth-quarter orders were well above expectations. Investors now turn to the US Federal Reserve's policy decision later today, with interest rates widely expected to remain unchanged.