European stock markets are trading lower on Monday as automaker and bank shares led markets lower in thin volumes owning to the U.S. Martin Luther King Jr. holiday observance.

Europe's leading Blue-chip index, EURO STOXX 50 fell 20.55 points or 0.62 percent to trade at 3,303.79. Germany's benchmark index DAX lost 64.66 points or 0.56 percent to trade at 11,564.52. French benchmark index CAC 40 lost 26.18 points or 0.53 percent to trade at 4,896.31.

On the other hand, UK's benchmark index FTSE 100 gained 3.49 points or 0.05 percent to trade at 7,341.30.

On Friday, European stock markets closed higher. Europe's leading Blue-chip index, EURO STOXX 50 rose 37.64 points or 1.15 percent to settle at 3,324.34. UK's benchmark index FTSE 100 rose 45.44 points or 0.62 percent to close at 7,337.81.