Banks were in focus after Societe Generale SA and Storebrand ASA reported earnings.
SocGen declined 3.6% after it reported December quarter loss of €476 million compared to €100 million profit in the quarter a year ago. The bank wrote down goodwill of €392 million.
The lender also guided that it plans to meet the capital requirement in core Tier 1 ratio under Basle III between 9% and 9.5% by the end of this year.
The bank also issued 45 euro cents dividend a share, representing 26% payout of profit, after skipping the dividend in 2011.
BNP Paribas is scheduled to report its earnings tomorrow.
Heineken NV increased 5.5% to €54.79 after the third largest global brewer reported full-year earnings ahead of expectations.
Heineken NV the Netherlands based beer maker reported full year revenue increase of 7.4% to €18.4 billion compared to €17.1 billion. Net profit surged 106% to €2.95 billion from €1.43 billion and diluted earnings per share climbed 9% to €2.94 compared to €2.70 from a year ago.
PSA Peugeot Citroen soared 6% after the French automaker reported €5 billion loss in 2012 and said it will look for €900 million of additional spending cuts in 2013.
Peugeot Citroen is one of the most heavily shorted stocks across Europe with more than 16% of its outstanding shares lent to sellers.