European shares fell before the opening on Monday, as technology stocks led the declines in an unsettling beginning to a week that is expected to bring an enormous rate increase from the U.S. Federal Reserve.
Pan-European STOXX 600 index was 0.4 less, reaching the lowest in two months. It also saw the technology sector index that is rate sensitive was fell 0.6 percent.
All eyes will be focused on the Federal Open Market Committee (FOMC) which is the rate-setting agency that is part of the U.S. central bank, that will announce its decision on Wednesday. Many analysts believe it will announce the third straight 75-basis-point rate hike.
Related: European stocks drop sharply, and retail sales in the UK fall.
European markets posted their weakest week in the last three weeks on Friday due to escalating concerns about recession, despite an aggressive tightening by central banks.
Volkswagen (ETR: VOWG_p) gained 0.4 percent after it was able to see an estimated valuation of 75 billion euros ($75.1 billion) for the premium car manufacturer Porsche, in what will be the second-highest Initial public offer (IPO) in history.