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London - European stock markets dropped on Monday following losses across Asia, as traders looked ahead to key central bank meetings due towards the end of the week.
Around 10:30 GMT, London's benchmark FTSE 100 index was down 0.3% compared with Friday's closing level.
In the eurozone, Frankfurt's DAX 30 lost 0.7% and the Paris CAC 40 slid by 0.4% in value.
The euro fell against the dollar, as data on Monday showed that German business confidence held stable in April.
Asian stock markets meanwhile sank again after pre-weekend losses on Wall Street and in Europe, with oil prices down and the yen rising.
Japan's Nikkei index closed 0.8% lower, with a recovery in the yen weighing on exporters, while share price losses followed a sell-off Friday that was fuelled by profit-taking from a recent rally.
Dealers moved cautiously at the start of a busy week that includes policy meetings at the US Federal Reserve and Bank of Japan, as well as earnings reports from big-name firms.
"Equity markets have made a poor start to the week, still struggling to hold onto recent gains as bullish sentiment wanes and profit-taking continues ahead of central bank updates from the US Federal Reserve and the Bank of Japan (BoJ)," said Mike van Dulken, head of research at Accendo Markets.
Markets are expecting the BoJ to unveil fresh stimulus measures, while persistent worries about the global economy will probably keep the Federal Reserve on hold this week as it reviews interest rates.
"While last week was very much focused on an European Central Bank eager for time to help the efficacy of its monetary policy on the eurozone economy, this week is all about the Federal Reserve and the Bank of Japan; two central banks who could not be at further ends of the policy spectrum from each other," said Jeremy Cook, chief economist at currency group World First.
The minutes to the Fed's last meeting show some advocating an earlier rate hike to ensure the Fed does not miss the boat when inflation picks up.
The European Central Bank last week kept monetary policy on hold but pledged more easing to stimulate growth if needed.
German business confidence meanwhile held steady in April as the positive mood in Europe's biggest economy prevails despite global uncertainties, the Ifo economic institute said on Monday.
The Ifo institute's closely-watched business climate index eased to 106.6 points in April from 106.7 points in March, Ifo said in a statement.
Analysts had been expecting a modest increase in the index this month.
