• The pan-European Stoxx 600 provisionally ended 0.4% lower, with tech stocks falling more than 2.1% to lead losses.
• Markets kicked off the first full trading week of the month focused on concerns around inflation, Federal Reserve tapering, rising interest rates and Evergrande.

European stocks closed lower on Monday as markets began the first full trading week of October.

The pan-European Stoxx 600 provisionally ended 0.4% lower, with tech stocks falling more than 2.1% to lead losses.

The market move comes after a tricky September, with concerns around inflation, Federal Reserve tapering and rising interest rates dominating sentiment. The 10-year U.S. Treasury yield topped 1.56% last week, its highest point since June.

Asian markets were mixed on Monday, with Hong Kong's Hang Seng index tumbling more than 2% as trading in shares of China Evergrande was halted ahead of an announcement about a "major transaction."

Trading in the shares of Evergrande Property Services was also halted. At the same time, the shares of another Chinese property developer Hopson were also suspended.

Stateside, the major U.S. averages dipped on Monday as investors continued their rotation out of technology stocks amid rising bond yields.

Back in Europe, Euro zone finance ministers met to discuss matters including the EU's recovery plans, banking union and fiscal policy.

In terms of individual share price movement, Stockholm-listed gambling company Kindred Group fell over 8% to the bottom of the Stoxx 600 after Carnegie downgraded the stock.

At the top of the index, TechnipFMC climbed 6.4% after Technip Energies, in which it has a stake, announced a joint development with Siemens Energy.

British supermarket chain Sainsbury gained 3.3% as speculation continued that it could be a takeover target following rival Morrisons' sale to U.S. private equity firm Clayton, Dubilier & Rice (CD&R).

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— CNBC's Eustance Huang and Maggie Fitzgerald contributed to this market report.