Europe Shares Inch Lower Ahead of EU Summit

European stock markets inched lower on Monday as investors were closely monitoring euro-zone events ahead of a European Union summit that will take place later this week.

The Stoxx Europe 600 index (XX:SXXP) -0.90% fell 0.7% to 244.8. Europe’s benchmark advanced about 1% last week.

Drug makers weighed on indexes in Europe, with Novartis AG (CH:NOVN) -0.57% down 0.7%, Roche Holding AG (CH:ROG) -0.74% off 0.6% and Sanofi SA (FR:SAN) -0.81% 0.9% lower.

British pharmaceutical firm Shire PLC (UK:SHP) -10.43% tumbled 10.2% after the U.S. Food and Drug Administration approved a generic version of its hyperactivity drug Adderall XR. In the U.K., the FTSE 100 index (UK:UKX) -0.58% traded 0.5% lower at 5,485.36.

Banks were also lower across the Continent.

In Spain, Banco Popular Español SA (ES:POP) -1.97% shed 2.2%, Banco Santander SA (ES:SAN) -1.99% SAN +3.94% dropped 1.6% and BBVA SA (ES:BBVA) -1.81% BBVA +4.46% lost 1.6%.

The Spanish government is expected to make its formal bailout request for its ailing banking sector later on Monday.

Elsewhere, investors further awaited an EU summit at the end of the week with EU leaders expected to discuss firmer fiscal integration and the creation of a banking union.

In France, Société Générale SA (FR:GLE) -1.71% fell 1.7% and BNP Paribas SA (FR:BNP) -1.51% gave up 1.6%, adding pressure to the CAC 40 index (FR:PX1) -1.24% (FR:PX1) -1.24% (FR:PX1) -1.24% , which lost 1.2% to 3,054.34.

German Deutsche Bank AG (DE:DBK) -2.98% slid 2.1%, while Commerzbank AG (DE:CBK) -1.85% ticked 1.1% lower, Market Watch reported.

The DAX 30 index (DX:DAX) -1.47% lost 1.5% to 6,170.13, further weighed by industrial conglomerate Siemens AG (DE:SIE) -1.85% (XE:SIEB) -0.68% — off 1.5%.

Power technology firm ABB Ltd. (SE:ABB) -4.18% (CH:ABBN) -2.53% fell 2.3% after J.P. Morgan Cazenove downgraded the stock to underweight from neutral.