Milan's benchmark FTSE MIB index was the worst performer in Europe, recoiling 0.6 percent.

Frankfurt, London and Paris each shed about 0.2 percent in value.

Later on Monday, a deeply eurosceptic far-right party and an anti-establishment group are set to unveil a coalition government agreement and name a new Italian prime minister, ending over two months of political deadlock.

The leaders of the anti-immigrant League party and Five Star Movement will meet the Italian president to share details of a government programme for the eurozone's third largest economy.

"An optimistic start to trade throughout Asia has failed to translate into a strong start in Europe," noted IG Markets analyst Joshua Mahony.

He added: "A right-wing coalition in Italy has done little to boost markets, with Europe failing to follow their Asian counterparts higher despite the prospect of a positive conclusion to US-China trade talks."