The pan-European Stoxx 600 closed provisionally 0.3 percent lower with most sectors in the red. Basic resources stocks were under pressure as trade concerns lingered. Europe's tech sector was also on the back foot, down 1.62 percent amid concerns big technology companies are struggling to deliver on earnings. Enterprise software firm Sage was the biggest drag on the sector, down 5.139 percent.

Several analysts claim the agreement reached last week between President Donald Trump and Europe over trade links is vague. Shares of BMW were marginally lower on Monday following news that it is set to become the first major carmaker to hike prices on U.S.-built vehicles it exports to China as the implications of the ongoing global trade war start to trickle through to consumers. The carmaker's stock pared those losses later on in the session.

In other earnings news, Heineken shares dropped to the bottom of the European benchmark, down 6.46 percent, after reporting lower-than-expected results for its second quarter and after cutting its margin outlook.

Hiscox, an underwriter of Lloyd's, rose to the top of the index, up by 7.264 percent. This was after reporting results for its first half of the year that came in above expectations.

On Wall Street, stocks fell as tech shares extended a rout seen in the previous week of trade.