European stocks followed Asian equities lower as a sharp drop for cryptocurrencies indicated some investor caution ahead of a slew of US economic data due this week.

The Stoxx Europe 600 Index was down 0.2% by 9:22 a.m. in Paris, with the industrials and real estate sectors leading declines. European defense stocks fell after reports of progress in Ukraine-Russia talks, with Germany's Rheinmetall AG and France's Thales SA both declining.

Among other individual movers, ASML Holding NV shares rose after the chip equipment maker was named top pick in the semiconductor sector by analysts at JPMorgan Chase & Co.

Bitcoin slid as much as 6% to below $86,000, bringing fresh momentum to a wide-ranging selloff that appeared to have settled.

"There's some risk-off sentiment fueled by the Bitcoin drop but this is not a continued selloff," said Andrea Tueni, head of sales trading at Saxo Banque France. Still, "there's no clear trigger and I have the feeling that no one wants to go downwards full-on."

Traders are also awaiting US data this week including on inflation and the labour market. "The market is still hesitating a bit ahead of the upcoming macro data and before the Christmas rally people typically expect at this time," Tueni added. 

Europe's main regional index is up 13% so far this year and is trading about 1.5% away from the record level in touched last month, amid resilient earnings and economic growth. 

Source : Bloomberg