European stocks drop (AFP)

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fell on Monday as investors tracked the ailing banking sector and digested evidence of a deep Japanese recession as well as a weekend meeting of key finance chiefs.

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London's FTSE 100 index of leading shares fell 0.91 percent to 4,151.33 points, Frankfurt's DAX 30 slid 0.79 percent to 4,378.33 points and in Paris the CAC 40 declined 0.76 percent to 2,975.09. "There remains a bitter taste in the mouth after (British bank) HBOS's loss last Friday, Japan 's terrible GDP (gross domestic product) figure and the failure of the G7 to tell the market anything new following their meeting over the weekend," said City Index Market Strategist Joshua Raymond.

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