European stocks dropped Monday, with German shares falling on the back of downbeat data from the region's largest economy. The oil-price losses followed gains logged last week, supported by expectations of continued declines in U.S. crude production.

U.S. stocks finished lower Monday, but pared their declines heading into the close, as investors weighed a round of lackluster earnings and awaited the conclusion of a Federal Reserve policy meeting later in the week. Central bank policy is expected to remain a prominent theme this week. Signs of rising inflation in the U.S. might influence the Fed to adopt slightly more hawkish language in its monetary policy statement, analysts said.

Asian stocks fell for a third day as raw-materials shares declined and Tokyo equities slumped before this week's central-bank meetings in the U.S. and Japan. The Bank of Japan's meeting concludes the following day and most economists predict monetary stimulus will be stepped up in Asia's second-biggest economy.

Based on MarketWatch materials