European stocks open lower as tech stocks drop

European stocks open lower as tech stocks drop

(Reuters) – European shares fell at the open on Monday as technology shares led declines in a bleak start to a week that is expected to see the US Federal Reserve raise interest rates significantly.

The European index fell 0.4%, hitting its lowest level in two months, while the rate-sensitive technology sector index fell 0.6%.

This week, all eyes will be on the Federal Open Market Committee (FOMC), the US central bank’s rate-setting body, which will announce its decision on Wednesday. Most analysts expect it to present a third consecutive increase of 75 basis points.

European markets on Friday ended their worst weekly performance in three months as recession fears escalated amid violent central bank tightening.

Volkswagen (ETR) rose 0.4% as it saw a valuation of up to 75 billion euros ($75.1 billion) for luxury sports car maker Porsche, in what would be Germany’s second largest initial public offering in history.

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