European Stocks Close Slightly Lower

European stocks closed slightly lower on Monday, maintaining the cautious mood from the morning as the lack of fresh catalysts held the market's forefront on the outlook of global rates and whether companies in the AI space are overvalued.

The Eurozone's STOXX 50 dropped 0.2% to 5,750 and the STOXX 600 inched 0.1% down to 587.

Fresh pessimism on a favorable outcome in negotiations of a ceasefire between Ukraine and Russia also weighed on the continent's equities.

Beverage producers AB InBev and Pernod Ricard lost more than 2% each as China placed 45% tariffs on European dairy products to heighten controls against the food and alcoholic beverage sector.

Also, Stellantis sank 5.7% after the Italian competition authority closed its investigation on the producer and Italian arms of Tesla, BYD, and Volkswagen on transparency of driving range advertisement.