The pan-European STOXX 600 index slid 0.2% by 0710 GMT, with oil and gas shares falling the most by 1.1%, as oil prices fell more than 1% on Monday on concerns about rising interest rates.
Healthcare shares rose 0.4%, led by Philips NV, which jumped 10.8% after the Dutch health technology group posted better-than-expected first-quarter results.
Investors will closely monitor results from some of the highest-valued U.S. companies including Microsoft Corp, Google parent Alphabet Inc and Amazon.com Inc this week.
Back home, big banks Barclays Plc, Santander, Deutsche Bank AG, UBS Group AG, and consumer companies like Nestle SA, Reckitt and Unilever Plc report results this week.
Commentary from European Central Bank policymakers Fabio Panetta and Francois Villeroy de Galhau will be tracked closely for more clues on the ECB's monetary tightening path, while also Euro zone's flash estimates for GDP growth in April
Shares of Software AG skyrocketed 50.0% in early trade after private equity firm Silver Lake offered to buy the German software developer.
(Reporting by Shubham Batra in Bengaluru; Editing by Varun H K)
