European equities closed lower for a fourth straight session on Monday, with the pan-European Stoxx 600 down 0.22 percent at 656.41 as losses in luxury and consumer staples outweighed gains in miners and healthcare. Investors shifted attention from an earnings season that is largely over to geopolitics and monetary policy, as fading hopes for a Washington-Tehran peace deal kept oil prices firm and risk appetite subdued. The FTSE 100 fell for a sixth consecutive day to its lowest level in more than three weeks, while the FTSE 250 lost 0.66 percent. Personal and household goods fell 2.3 percent, food and beverages dropped 2.3 percent, and the luxury sub-index lost 1.96 percent, with Kering down 4.3 percent and LVMH off 2.7 percent. Diageo fell 3.4 percent after Reuters reported, citing two government sources, that it had agreed to reformulate some drinks in India. By contrast, basic resources rose 0.7 percent and healthcare added 0.8 percent; Anglo American gained 2.0 percent as gold and copper strengthened, and Rolls-Royce rose 1.5 percent after brokers lifted price targets. Friday's soft U.S. retail sales data reinforced expectations that the Federal Reserve will leave rates unchanged next month, while LSEG data showed money markets pricing roughly an 84 percent chance of a 25-basis-point ECB hike in September. Short-term pricing implies the ECB deposit rate could rise to 2.76 percent by March 2027 from 2.25 percent now. Goldman Sachs raised its 12-month Stoxx 600 target to 695 from 660, implying about 5.5 percent upside, citing resilient growth and strong earnings. Bond markets remained under pressure, with Germany's 10-year bund yield touching its highest since May 2011 and French long-dated yields reaching levels last seen in 2008 and 2009, as investors weighed inflation risks, defense spending and heavier bond issuance linked to prolonged Middle East tensions.