European markets started the new trading week on a negative note as investors assessed the latest economic data and interest rate outlook.
European markets
The pan-European Stoxx 600 index provisionally closed 0.8% lower, with all sectors bar healthcare and utilities trading in the red. Retail led losses, down 2.1%.
Meanwhile, the U.K.'s FTSE 100 fell 0.8% to pull away from the record high it reached on Friday.
One of the big data points last week, composite Purchasing Managers' Index for the euro zone, showed business activity in the single currency area returned to growth in January for the first time in six months, adding to hopes the bloc will avoid a recession.
The U.S. jobs report last Friday came in much stronger than expected, with nonfarm payrolls increasing by 517,000, far more than the Dow Jones estimate of 187,000 — causing investors to reassess whether the Federal Reserve will cut rates in the fourth quarter.
U.S. stocks also fell as corporate earnings continued to come in, while stocks in the Asia-Pacific were mostly lower.