Investing.com - European stocks were lower on Monday, as investors remained cautious ahead of the Federal Reserve's monthly policy meeting on Wednesday and the vote on Scottish referendum scheduled the next day.
During European morning trade, the DJ Euro Stoxx 50 fell 0.24%, France’s CAC 40 retreated 0.41%, while Germany’s DAX slipped 0.22%.
Markets were jittery amid growing expectations for an early hike in U.S. interest rates.
The Fed was expected to cut its asset purchase program by another $10 billion at its upcoming policy meeting on Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
Meanwhile, investors eyed the upcoming referendum on Scottish independence. Anopinion poll conducted last Wednesday showed that support for the no campaign was back in the lead with 53% of voters.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) declined 0.48% and 0.55%, while Germany's Commerzbank (XETRA:CBKG) retreated 0.85%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) lost 0.04% and 0.83% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) fell 0.25% and 0.48%.
Elsewhere, Heineken (AMS:HEIN) saw shares rally 1.74% after the brewer rejected on Sunday a takeover deal from Sabmiller (LONDON:SAB), whose shares surged 4.60%.
Clothing retailer Hennes & Mauritz (ST:HMb) added to gains, up 2.25% after reporting a 19% increase in third-quarter sales.
In London, FTSE 100 lost 0.41%, weighed by losses in the financial sector.
Shares in Barclays (LONDON:BARC) and HSBC Holdings (LONDON:HSBA) edged down 0.11% and 0.12%, while Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) tumbled 1.07% and 1.06% respectively.
In the mining sector, stocks were also broadly lower. Glencore Xstrata (LONDON:GLEN) slid 0.36% and Rio Tinto (LONDON:RIO) saw shares fall 0.25%, while Bhp Billiton (LONDON:BLT) declined 0.43% and Vedanta Resources (LONDON:VED) lost 1.06%.
Meanwhile, TUI Travel (LONDON:TT) saw shares jump 1.83% after it and Tui AG (XETRA:TUIGn) lifted the benefits aimed from their planned all-share merger after the board of the U.K. tour operator recommended its shareholders to accept the offer.
The combined entity is expected will realise €100 million from the combination.
In the U.S., equity markets pointed to a lower open. The Dow 30 futures pointed to a 0.25% fall, S&P 500 futures signaled a 0.28% loss, while the NASDAQ 100 futures indicated a 0.26% decline.
Later in the day, the U.S. was to release reports on manufacturing activity in the Empire State and industrial production.