The pan-European Stoxx 600 slid 1.2 per cent, with declines in French energy group Total and German enterprise software maker SAP dragging down the index.
Analysts at Commerzbank urged caution against completely excluding a scenario where negotiations fail. The Stoxx 600 has traded in a limited range since June, but markets are bracing for the European Central Bank's policy meeting on Thursday, which could act as the next catalyst.
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