European equities lost ground in October despite solid third-quarter results for most companies across the region.
Europe's benchmark Stoxx 600 index fell 6 percent for the month, despite a strong 1.7 percent rally on the final session of trade.
This comes as revenue and earnings-per-share (an important metric used by traders to gauge a company's value) growth remained healthy and most companies in Europe have maintained their full-year guidance to the market. However, investor sentiment has remained fragile.
"Slower Chinese demand for euro zone exports, escalation of trade tensions, and Italy have weighed on European growth and sentiment. There is scope for recovery, but something would need to change," said Nandini Ramakrishnan, a global market strategist at J.P. Morgan Asset Management, said in emailed research to CNBC.