European stocks open lower as tech stocks fall

European shares rebounded at the open on Monday and technology shares led the decline amid expectations of a significant interest rate hike by the Federal Reserve (the US central bank) in the coming days.

The pan-European STOXX 600 index fell 0.4 percent, hitting its lowest level in two months, while the technology sector index, sensitive to interest rates, fell by 0.6 percent.

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

On Friday, European markets ended their worst weekly performance in three months as recession fears escalated amid sharp tightening from central banks.

Volkswagen shares rose 0.4 percent after a valuation of 75 billion euros ($75.1 billion) for luxury sports car maker Porsche, in what would be Germany’s second largest initial public offering ever.