"The main themes on the market remain the debt crisis and where southern European rates are heading"
- Michael Borre, the chief equity analyst at Nordea Private Banking
European stocks closed lower on Monday after yields on 10-year Spanish government bonds broke above seven per cent and a report showed Japan's core machinery orders tumbled.
The Stoxx Europe 600 Index fell 0.37 per cent to 253.46. Germany's DAX Index erased 0.35 per cent and France's CAC 40 Index slid 0.38 per cent.
"The main themes on the market remain the debt crisis and where southern European rates are heading," said Michael Borre, the chief equity analyst at Nordea Private Banking in Copenhagen.
"That's why we continue to expect markets to stay nervous and volatile this week."
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