2017.08.2120:49:00UTC+00European Markets Lower as Fiat Chrysler, Maersk Pared Losses

European stocks dropped on Monday, although gains in Fiat Chrysler and Maersk helped pare losses. Declines followed a weak Asian session as investors trimmed risky assets while joint U.S. and South Korean military drills started.

The pan-European STOXX 600 slipped 0.5 percent, with euro zone blue-chips down 0.5 to 0.7 percent. The STOXX 600 fell nearly six percent from its mid-May 20-month high.

European lenders were hit the hardest, shedding 0.9 percent. Deutsche Bank and French banks BNP Paribas, Credit Agricole and Societe Generale were among top losers.

Carmaker Fiat Chrysler climbed 6.9 percent to a 19-year peak after Great Wall said it is interested in the Italian-American company. Although Fiat said it has not been approached, shares of the company rose 16 percent in the past week since rumors initially emerged that a Chinese buyer might be interested in the automaker.

Maersk shares rose 2.9 percent after the Danish shipping company agreed to sell Maersk Oil to French oil major Total for $7.45 billion. Shares of Total were 0.3 percent higher.

With the second-quarter European reporting season coming to a close, 60 percent of firms have either exceeded or met expectations, while share price reactions have been muted overall.