The pan European index slipped 0.5%, dragged down by health care, bank and chip stocks.
Shares of property developer China Evergrande Group plunged 25% on Monday after police detained some staff at its wealth management unit. Fellow developer Country Garden faced yet another liquidity test with a deadline to pay $15 million in interest linked to an offshore bond. TD Securities’ models predicted a slowdown in growth later this year that central banks might have to eventually counter by easing rates, said Rossiter.MSCI’s broadest stock index declined 0.15% by 0830 GMT after European indices opened lower. Japan’s Nikkei was closed for a public holiday.
“In theory, the FOMC meeting should be a low-volatility affair, but it is a risk that needs to be managed,” said Chris Weston, head of research at Pepperstone.