By 0711 GMT, the pan-European FTSEurofirst 300 index of top shares was flat at 1,156.96 points after news of Osama bin Laden's death had helped push the market to a two-month closing high in the previous session.

"I don't think if we look at the fundamental background, we have the basis for a major sell-off, but we have come far enough in a short space of time and there could be a little consolidation," Mike Lenhoff, chief strategist at Brewin Dolphin, which has 25 billion pounds of assets under management, said.

"Investors are waiting to see how the week progresses. A lot of economic news is due out including the all important US non-farm payrolls on Friday."

The STOXX Europe 600 Basic Resources index fell 0.4 percent, tracking metal prices lower as investors took a cautious stance ahead of key US economic data this week.

Man Group, the world's largest listed hedge fund firm, gained 4.1 percent after it raised $1.5 billion for a new open-ended, computer-driven trend fund in Japan, its biggest fund launch since the financial crisis.