European stocks dropped Monday, led lower by basic resources stocks as gold prices declined and renewed strength in the dollar dented commodities prices generally.
Additionally, there was evidence of consolidation of profits following the upbeat nonfarm payrolls data on Friday and subsequent rise in equity markets.
The pan-European Stoxx 600 index was down 1.1% at 246.4. London's FTSE 100 was down 1.1% at 5265.7, Frankfurt's DAX declined 0.9% to 5766.1 and Paris's CAC-40 was 0.8% lower at 3814.3.
The Stoxx 600 basic resources sub-sector was last seen down 1.8% and was the biggest declining sector in Europe.
Corporate news was thin on the ground as market participants geared themselves up for quieter sessions ahead of the Christmas break, which is just three weeks away. UBS AG was slightly lower, down 0.6% in Zurich after it said it wanted Deutsche Lufthansa AG's boss Wolfgang Mayrhuber to join its board.
Meanwhile, Heineken NV, the world's third-largest brewer, said it had reached a pact with United Breweries allowing the Dutch brewer to brew and sell its own brand of beer in India. It was down 0.2% in Amsterdam.
Earlier in Asia, stock markets were mixed Monday despite the stronger cue from Wall Street, as resource stocks fell across the region although Japanese exporters rallied after the yen's losses Friday. Japan's Nikkei 225 rose 1.4%, Australia's S&P/ASX 200 fell 0.6% and South Korea's Kospi Composite increased 0.5%. In Hong Kong, the Hang Seng Index shed 0.6%, while the Shanghai Composite index came off its lows, ending up 0.5%.
In the European foreign exchanges Monday, the dollar was taking a breather after rising on Friday's stronger-than-expected jobs data. The euro was fetching $1.4784, down from $1.4858 in New York late Friday, but the dollar was at ¥89.89, down from ¥90.56.
Meanwhile, spot gold continued to face selling pressure after its sharp decline in New York on Friday following a string of record highs in recent weeks. It was trading at $1140.00 per troy ounce, down $19.05 from the New York close.
Nymex January crude was trading at $74.84 per barrel, down 63 cents from the New York close.
