Mining stocks came under pressure on Monday after a strong sell-off in gold. Fresnillo, Lonmin and Randgold plummeted to near the bottom of the Stoxx 600, with all ending more than 4 percent lower.
Read MoreInvestors should question gold as a safe haven
Meanwhile, Julius Baer said on Monday that first-half net profits plunged 62 percent after it paid a $350 million charge to settle a tax case in the U.S. The news saw shares close down around 1.4 percent.
Barclays shares turned slightly negative after The Sunday Times newspaper reported that the British bank planned to cut more than 30,000 jobs within two years, after firing Chief Executive Antony Jenkins this month. However, shares reversed earlier losses to close slightly higher
Read MoreBarclays plans to cut more than 30,000 jobs: The Times
French firm Schneider Electric said it would buy Britain's Aveva in a reverse takeover. Schneider Electric's shares were over 0.5 percent higher by the close, while shares in Aveva skyrocketed to end more than 27 percent higher.