The Stoxx 600 was trading just 0.03% higher at 518.99 by 1202 CET as mild gains in Paris and Madrid were offset by losses in London and Frankfurt and a flat performance in Milan.

Oil stocks were among the worst performers as crude prices plummeted to their lowest in a month on Monday. Israel and Iran traded airstrikes over the weekend but avoided oil or nuclear sites. Crude markets have been volatile in recent weeks on fears that an escalation of conflict might affect supplies from Iran, which accounts for around 4% of global supplies. Brent was down 5.5% at $71.45 a barrel by midday.

Risk appetite was being scaled back ahead of the latest quarterly results from five of the Magnificent Seven tech stocks this week: Alphabet, Microsoft, Meta Platforms, Apple and Amazon.com. Also scheduled to publish earnings are economic bellwethers Ford, McDonald’s, PayPal, Caterpillar, Exxon Mobil and Chevron.

While Monday's economic data calendar was quiet, the focus will likely be on US non-farm payrolls due out on Friday, which are expected to show a big drop in job creation in October to 140,000, compared with the bumper 254,000 number in September.

"Despite the relative lack of market moving events today, this week’s release of earnings from five of the MAG7 does highlight a high likeliness of major volatility going forward," said Joshua Mahony, chief market analyst at Scope Markets.

"In a week that culminates in Friday’s US jobs report, the question of whether we are seeing a soft or even a non-landing will once again cast light on the trajectory of Fed rates in the months to come."

Rumbling on in the background are ongoing concerns ahead of the presidential election vote on 5 November, with polls showing that the race is still too tight to call. Republican frontrunner Donald Trump and Democratic vice president Kamala Harris are now entering their final full week of campaigning in key swing states.

Philips drops

Dutch health tech giant Philips dropped 17% after lowering its full-year sales guidance as it reported an unexpected decline in third-quarter revenues on the back of a significant decline in demand from China. Philips is now guiding to sales growth of just 0.5-1.5% for the year, down from earlier guidance of 3-5%.

Others in the health sector such as Demant, Siemens Healthineers and Elekta were also under the weather.

In London, Lloyds fell after saying it is assessing a set a new standard for motor dealers acting as credit brokers, requiring them to disclose commissions paid by lenders more comprehensively to customers. According to the Court of Appeal, lenders were also liable for any non-disclosures by dealers.

Oil majors BP, Shell, Repsol and TotalEnergies were firmly lower as the price of oil tanked.