*

Forvia jumps on supply deal with China's BYD, Xiaomi ( XIACF )

*

SAP, bank earnings in focus this week

(Updated at 1600 GMT)

By Paolo Laudani, Ankika Biswas and Johann M Cherian

Oct 21 (Reuters) - European shares ended Monday's choppy

session in the red ahead of a series of marquee corporate

earnings, although stabilising oil prices buoyed the energy

sector.

The continent-wide STOXX 600 slipped 0.6%, with the

real estate sector leading with a near 2% drop, while

energy stocks led gains as oil prices stabilised after a

7% drop last week.

Bourses in top markets Germany, France,

Italy and Spain ended down between 0.6% and 1%.

The STOXX index had ended higher last week, on the back of a

rise the week before as well, after the European Central Bank

cut its interest rate on Thursday.

Lithuanian central bank governor Gediminas Simkus said on

Monday the ECB may need to reduce it below the "natural" level

if a fall in inflation became entrenched.

Meanwhile, all eyes are on Deutsche Bank, Lloyds

and Barclays ( JJCTF ) who will kick off earnings

reporting for the heavily weighted financials sector this week.

Russ Mould, investment director at AJ Bell, said markets

would keep an eye on loan impairments which had seen a relative

increase among U.S. banks.

German software behemoth SAP, which comprises 15%

of the country's benchmark DAX index will further set the tone

for tech stocks when it reports third-quarter earnings later on

Monday.

"Just by way of market cap, (SAP's results) will be pored

over with unusual amounts of attention and after ASML's

disappointment people, will be looking to another megacap for

some reassurance," Mould said.

Lacklustre results from the chip equipment maker

had sparked a rout in semiconductor stocks globally last week.

Investors also monitored polls that showed a rising chance

of former President Donald Trump winning the Nov. 5 U.S.

election, which would be seen as bruising to the European

economy. Those odds were reflected in "Trump trades" such as the

U.S. dollar and cryptocurrency bitcoin.

Insurance stocks were among the losers on Monday,

bogged down by Munich Re's 3% drop after Jefferies

cut its rating on the stock to "hold", expecting little upside.

Coffee and tea company JDE Peet's jumped 16.3% to

the top of the STOXX 600 after it appointed a new chief

executive and confirmed its 2024 outlook.

Forvia climbed 5.2% after the French car part

supplier secured new deals with Chinese automakers BYD

and Xiaomi ( XIACF ).

Sanofi dipped nearly 1%. The French drugmaker said

it had entered exclusive talks to sell a 50% controlling stake

in its consumer health business Opella to U.S. private equity

firm Clayton Dubilier & Rice.

Switzerland's SGS fell 2.3% after RBC cut its

rating on the testing and inspection company's stock to

"underperform".