European stocks open lower as concerns over rate hikes loom

European stocks began trading in the last week of the third quarter of the year with a decline, as investors became concerned about the tendency for interest rates to remain high for a longer period, and the weakness of shares of companies exposed to China pressured the index.

According to Reuters, the European Stoxx 600 index fell 0.4% by 0704 GMT on Monday.

The German DAX index fell 0.3% as concerns grew about the conditions of the continent’s largest economy after the Minister of Environment said that the government would indefinitely suspend plans for stricter insulation standards for buildings to help the faltering sector.

As for German stocks, they had the worst performance in the region so far this quarter, as they fell by 3.9%, compared to the 2.2% decline of the STOXX 600.

Luxury goods stocks exposed to China, such as LVMH, fell by 0.6 percent and Kering, by 2 percent, amid continuing concerns about growth in the second largest economy in the world.