European shares open lower as tech shares fall

(Reuters) – European shares fell at the open on Monday as technology shares led declines, in a sombre start to a week which is expected to see a large interest rate hike by the U.S. Federal Reserve.

The pan-European index was 0.4% lower, hitting its lowest in two months, while the rate-sensitive technology sector index down 0.6%.

All eyes this week will be on the Federal Open Market Committee (FOMC), the rate setting body of the U.S. central bank, which will announce its decision on Wednesday. Most analysts expect it to deliver a third straight 75 basis-point hike.

European markets closed their worst weekly performance in three months on Friday on escalating recession worries amid aggressive central bank tightening.

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

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