European markets down 1.7% on Evergrande fears; investors prepare for Fed meeting

LONDON — European stocks were lower on Monday as global markets contended with concerns over the U.S. Federal Reserve’s tapering timetable and fears surrounding embattled developer China Evergrande Group.

The pan-European Stoxx 600 index was down by around 1.7% in morning deals with basic resources and banks leading the losses.

The lower open for Europe come as global stocks continue to struggle in September, traditionally a weak month for markets, with the Dow Jones Industrial Average seeing three straight weeks of losses for the first time in 2021.

Global markets are also experiencing some jitters ahead of the U.S. Federal Reserve’s highly anticipated September meeting, which starts Tuesday. Fed Chair Jerome Powell will hold a press conference Wednesday at the conclusion of the two-day meeting with investors keen to pick up any indications about the Fed’s tapering of its easy monetary policy.

Powell has said the tapering could occur this year but investors are waiting for more specifics, particularly after mixed economic data released since Powell’s last comments. U.S. stock futures were mixed in overnight trading Sunday.

Meanwhile, Hong Kong’s Hang Seng index led losses among Asia-Pacific markets in overnight trade on Sunday, with shares of embattled Chinese developer China Evergrande Group continuing to drop. Markets in mainland China, Japan and South Korea were closed on Monday for holidays.

There were no major earnings releases in Europe on Monday.

In individual stocks news, Prudential shares tanked 7.5% after the company announced a Hong Kong share sale.

Meanwhile, AstraZeneca shares rose 2.3% after announcing promising results for a breast cancer drug