Europe's major stock markets retreated on Monday in subdued trading on a public holiday in the United States.

London sentiment was knocked by news that British construction group Carillion has collapsed. Carillion announced its immediate liquidation on Monday after the heavily-indebted British contractor failed to secure a financial rescue from the UK government or banks in last-ditch talks. That weighed in particular on share prices of its joint venture partner companies. Wall Street is closed on Monday owing to a US public holiday. The euro meanwhile soared to a three-year peak at 1.2269 dollars as Germany's preliminary coalition deal calmed Eurozone nerves.