LONDON: European shares fell on Monday, giving up their earlier gains as losses in Spain and a rise in the euro weighed on the region's stock markets.
The pan-European FTSEurofirst 300 index was down 0.4 percent going into the close of trading, while the euro zone's blue-chip Euro STOXX 50 also declined by a similar amount.
Spain's IBEX equity index was the worst performer, falling 2.7 percent after an inconclusive Spanish election result.
Neither Prime Minister Mariano Rajoy's conservatives nor left-wing parties won a clear mandate to govern in Sunday's poll, casting further uncertainty over the outlook for Spain's reform programme and broader economy. Talks on forming a coalition government are expected to take weeks.
"The Spanish election has added to some year-end nervousness among investors," said Caroline Vincent, European equities fund manager at Cavendish Asset Management.
A rise in the euro against the U.S. dollar also weighed on European shares, since a stronger euro can make it harder for European companies to export goods overseas.
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