UKX FTSE 100 Index

By Carla Mozee and Sara Sjolin, MarketWatch

German business confidence slips less than expected

European stocks erased earlier gains and moved lower on Monday, with energy companies weighing on benchmarks on the back of a more than 2% slump in oil prices.

The Stoxx Europe 600 lost 0.1% to 339.87, after trading as high as 343.08 earlier in the session.

The pan-European benchmark had opened firmly higher with a mix of earnings reports and deal-related news prompting investors to break a two-day losing run.

However, losses for crude-oil prices accelerated to 2.1% in the afternoon, sending the contract to $43.29 a barrel. That in turn weighed on Europe's oil majors, with shares of Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) down 2.3%, Total SA (TOT)(TOT) off 2.3% and Eni SpA (ENI.MI) 1.6% lower.

Earnings season: Morgan Stanley on Monday said that this week will be the busiest of the European second-quarter earnings season, with results due from 205 companies.

After having already tracked reports from 130 companies, "we've seen 35% of companies beat consensus estimates by 5% or more, with 28% missing, giving a net beat of 8% of companies. This is fractionally more positive than we saw in 1Q results, where we saw a net beat of 6% of companies," wrote analyst Matthew Garman in a note.

Read:Wall Street braces for feeding frenzy of earnings, central bank action (http://www.marketwatch.com/story/wall-street-braces-for-feeding-frenzy-of-earnings-central-bank-action-2016-07-23)

Advancers: Irish air carrier Ryanair Holdings PLC (RYAAY)(RYAAY)was among Monday's best share-price performers as shares soared 5.2%. The company backed its earnings target for the year (http://www.marketwatch.com/story/ryanair-profit-up-4-sticks-with-forecasts-2016-07-25) after a 4% rise in first-quarter profit.

Still, Ryanair said there are downside risks to watch during the rest of the year, including the impact of the U.K.'s Brexit vote (https://brexit.efinancialnews.com/ryanair-to-pivot-away-from-uk-in-face-of-brexit-uncertainty-edc4b173b595#.91fk8emw0) which put the country on course to leave the European Union.

Meanwhile, British gaming company William Hill shares (WMH.LN) climbed 6.5% as a consortium made up of gaming companies 888 Holdings PLC (888.LN) and Rank Group PLC (RNK.LN)said they're considering a potential takeover offer (http://www.marketwatch.com/story/888-rank-group-may-make-an-offer-for-william-hill-2016-07-25) for the bookmaker.

Ericsson AB (ERIC) (ERIC) shares gained 2.3% as Swedish the telecom-equipment maker said Hans Vestberg is stepping down as chief executive (http://www.marketwatch.com/story/ericsson-chief-departs-after-profit-plunge-2016-07-25-24854236), effectively immediately. This month, Ericsson posted a 24% drop in second-quarter profit and announced further cost-cutting measures.

Other movers: On the downside, shares of Italy's Banca Monte dei Paschi di Siena SpA (BMPS.MI) fell 8% even as Italy's finance minister said this week that investors are considering a rescue of Italy's beleaguered banks (http://www.marketwatch.com/story/italian-investors-mulling-a-rescue-of-nations-struggling-banks-2016-07-25).

Shares of LVMH Moët Hennessy Louis Vuitton SE (LVMUY) rose 1.2% as the luxury fashion house said it plans to sell Donna Karan International Inc (http://www.marketwatch.com/story/g-iii-to-buy-donna-karan-international-from-lvmh-for-650-million-2016-07-25). to G-III Apparel Group Ltd. (GIII) in a $650 million deal.

Indexes: Germany's DAX 30 rose 0.4% to 10,199.83 and France's CAC 40 slipped 0.2% to 4,374.64. The U.K's FTSE 100 dropped 0.4% to 6,701.61.

Italy's FTSE MIB was down 0.6% at 16,677.56 and Spain's IBEX 35 lost 0.5% to 8,556.40.

The euro was buying $1.0982 compared with $1.0976 on Friday.

Data: The closely watched Ifo business sentiment survey in Germany showed a decline in the index in July, but by less than anticipated (http://www.marketwatch.com/story/german-ifo-business-sentiment-declines-in-july-2016-07-25). The Ifo business climate index fell to 108.3 from 108.7 in June. Economists polled by The Wall Street Journal had expected a reading of 107.5. It was the first Ifo reading since the U.K.'s Brexit vote.

(END) Dow Jones Newswires

July 25, 2016 11:01 ET (15:01 GMT)

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