JITTERS over new bank capital rules in China and worries over Italy's relations with Brussels sent European stocks into the red on Monday.

The FTSE 100 was down over 1.1% or 85.21 points at 7,233.33, faring just mildly better than peers like the French CAC 40 and German Dax, which ended the day down 1.1% and 1.3%, respectively.

It comes after Chinese authorities cut the amount of cash cushion required to be held by its banks in a bid to support the national economy.

It was the fourth time China has cut its reserve required ratio (RRR) this year.

David Madden, a market analyst at CMC Markets UK, said: "The move is viewed as a sign of weakness and dealers are fearful the Chinese economy is cooling at a quick rate and needs support.

"Beijing and Washington DC are still locked in a trade spat, and trimming the RRR could be construed as an indication that they are in it for the long haul."

Traders were also watching as the yield on Italian government debt hit its highest level in over four years, signalling greater risk on investments.

"The Rome administration is set to be on a collision course with Brussels over the budget deficit," Mr Madden explained.

"Matteo Salvini, the joint deputy prime minister, confirmed the country will not be dropping the euro, but he asked that the ratings agencies be fair when assessing Italy's credit worthiness.

"Investors are nervous about the prospect of an already very indebted nation potentially clocking up even more debt."

The pound was mixed, trading up by 0.6% against the euro at 1.137 but falling 0.5% versus the US dollar to trade around 1.305.

Brent crude prices slipped 0.6% to around $83.49 per barrel amid reports that Iran could continue to export oil despite sanctions on the Middle Eastern producer.

In UK stocks, Lloyds Banking Group fell 0.77p to 58.16p as the lender confirmed it was in talks with investment giant Schroders over the creation of a new wealth management venture.

The deal could see Lloyds merge its £13 billion wealth management arm into the new entity, which would be 50.1% owned by the bank.

French Connection shares surged 12.1p to 55p after a weekend announcement confirmed that the retailer was reviewing "all strategic options in order to deliver maximum value for its shareholders", including a potential sale.

Reach, the publisher of the Daily Mirror, rose 1.05p to 66.65p after reporting higher revenues on the back of its acquisition of the Express and Star titles, as well as OK! magazine.

Excluding the acquisition, like-for-like revenue dropped by 7%.

Mitie was up 0.7p to 145p as the outsourcer struck a £14 million deal to acquire Vision Security Group, a security business, from Compass Group.

The biggest risers on the FTSE 100 were Next up 84p at 5,424p, Smurfit Kappa Group up 44p at 2,860p, Segro up 9p at 618.4p, and Centrica up 1.5p at 152p.

The biggest fallers on the FTSE 100 were Melrose down 10.45p at 181.3p, Ashtead Group down 121p at 2,181p, Halma down 68p at 1,368p, and Rolls-Royce Holdings down 38.2p at 922p.