The pan-European STOXX 600 closed down 0.8%, pulling back from a nine-month high it hit on Friday on optimism about the euro zone economy.
Nearly all sector indices were in the red, with rate-sensitive real-estate and technology stocks among those bearing the brunt of selling pressure and down about 2% each.
Retail stocks also fell 2.2%.
Stockholm-listed real estate firms Fabege, Fastighets AB Balder were the top percentage decliners on the STOXX 600, falling 8.7% and 7.2% respectively.
Concerns around elevated Sino-U.S. geopolitical tensions also weighed on sentiment, with China-exposed luxury goods makers Hermes International, LVMH and Kering falling between 1.8% and 3.8%.
Shares of Prudential Plc, a financial services firm with exposure to China, were also a drag on the STOXX 600.
Data on Friday showing strong U.S. job growth and a rebound in services industry activity last month has rekindled fears of a prolonged period of high interest…