- Iraq conflict threatens oil supply disruption
- UK builders down on mortgage crackdown
- Chinese retail sales and industrial output rises
- German inflation confirmed at 0.6%
FTSE 100: -1.05%
CAC 40: -0.81%
FTSE MIB: -0.89%
IBEX 35: -0.51%
Stoxx 600: -0.74%
European stocks were in the red on concerns over the impact of the Iraqi unrest on oil supplies.
US President Barack Obama said Baghdad may need their assistance as a rebel group threatened to take over the city after they overran army positions in Mosul this week. The violence is raising the prospect of further supply disruptions for OPEC's second-biggest oil producer.
"With US President Barack Obama not ruling anything out, we have to assume that the situation in Iraq is going to get worse before it gets better," according to Alpari UK analyst Craig Erlam.
"This will be disruptive to say the least, not just to the consumer who will see disposable income take yet another hit as they are forced to pay higher prices at the pump, but also to companies that rely on oil and gas. Hence why these stocks could suffer a lot more in the coming weeks and months."
A gauge of European oil companies rose the most on the Stoxx Europe 600 Index as the Iraq news pushed the price of oil higher.
Brent crude futures jumped $0.247 to $113.300 per barrel, according to the ICE.
Osborne to increase BoE's power on borrowing
UK building stocks declined on concerns over a potential cooling of the British housing market after Bank of England (BoE) Governor Mark Carney warned that interest rates could rise within six months.
Meanwhile, Chancellor George Osborne vowed to increase the BoE's power to curb mortgage lending in order to prevent Britons taking out mortgages that are too big in comparison to their income or the value of their home.
Barratt Developments, Land Securities Group and British Land were among the biggest fallers.
China, German, US data
A report showed Chinese industrial production rose 8.8% year-on-year in May, as expected by analysts, following an 8.7% gain a month earlier.
A separate report on Chinese retail sales showed a 12.5% jump, beating forecasts for a 12.1% increase and the previous month's 11.9% rise.
In Germany, inflation rose by 0.6% year-on-year increase in May, in line with estimates. The figures come amid concerns over weak prices in the Eurozone. The European Central Bank last week introduced new measures to stabilise prices.
In the US later on, the focus will turn to the release of the University of Michigan's preliminary estimate of the consumer confidence index in June, which is tipped to climb to 83 from 81.9 the prior month.
The euro increased 0.06% to $1.3560.