European markets opened lower on Monday with the dollar holding firm near a seven-month high after comments from Federal Reserve Chair Janet Yellen, as investors remain cautious ahead of earnings, key data and a European Central Bank (ECB) meeting later this week.

The pan-European STOXX 600 was down 0.31 percent with all major bourses in negative territory.

European stocks followed the cautious tone set in Asia as traders mull future policy decisions by major central banks.

Some analysts suggested that Yellen’s comments could suggest a looser for longer monetary policy stance, but others said that a December interest rate hike is still on the cards given positive retail sales and employment data from the U.S. in recent weeks.