European stocks fell for a second day as some disappointing earnings reports cast doubt on the strength of the euro-area economic recovery, amid weak commodity and oil prices.

Total SA and Royal Dutch Shell Plc slid at least 1.9 percent, contributing the most to a drop in energy stocks. Novartis AG pulled health-care shares down, falling 1.6 percent after reporting profit that missed estimates and agreeing to pay $390 million to settle claims that it paid kickbacks to some U.S. pharmacies. Anglo American Plc was among the biggest mining decliners, falling 5.7 percent. BASF SE dragged chemical shares lower, losing 4.7 percent after cutting its targets for sales and profit this year. 

The Stoxx Europe 600 Index slid 1.1 percent to 371.88 at the close of trading. Shares yesterday snapped a two-day rally, falling from a two-month high, amid speculation about the strength of economies in Europe, Asia and the U.S.

“It is going to be difficult to turn more positive on the energy sector until we see depressed and declining trends in profitability turn around more visibly, trends that have been in place since long before last year’s collapse in oil prices,” said William Hobbs, head of investment strategy at Barclays Plc’s wealth-management unit in London. “Commodity prices have been softer and these stocks haven’t participated in the rally as much as other sectors either.”

Still, European equities have recovered some ground after posting their biggest quarterly slump in four years. The Stoxx 600 is up 6.9 percent in October, heading for its largest monthly rally since January, boosted by speculation of further European Central Bank stimulus and China’s cut in lending rates.

“The rebound was driven mainly by Draghi and other central banks including China easing further, so people are now just taking a breather,” said Andreas Nigg, head of equity and commodity strategy at Vontobel Asset Management in Zurich. “There’s not much that could drive stocks higher. Fundamentally we’re still the same, the economy isn’t doing great, earnings have been mixed.”

Both the Federal Reserve and the Bank of Japan will give policy updates this week, with the U.S central bank announcing its interest rate decision on Oct. 28. Traders are pricing in a 4 percent chance of a Fed increase this month and about 33 percent in December.

“The market is not expecting much in terms of central banks,” said Hobbs. “They used to surprise markets but it seems now they don’t do anything if the market doesn’t expect it. If the Fed didn’t do anything in September, they will not do it now.”

Germany’s DAX Index jumped 12 percent this month through Monday, the most among developed markets, but speculation is growing that the rally may be close to an end. The relative strength index, a measure of market momentum, rose above 70 for the first time since March, a sign the equity benchmark’s advance may have been too quick to hold.

Among other shares moving on corporate news, Geberit AG dragged construction-related stocks lower, falling 4.8 percent after reporting third-quarter earnings and revenue that Berenberg Bank said missed estimates, and warning on challenging markets.

BP Plc reversed earlier gains, falling 1.1 percent. The U.K. energy company posted a 40 percent decline in quarterly earnings that still beat forecasts, while laying out plans for deeper costs cuts.