EUROPEAN stock markets opened lower on Monday (Sep 19) ahead of a US Federal Reserve decision on interest rates later this week, with investors fearing another big hike that could spark recession.

The Frankfurt DAX was 0.6 per cent lower at 12,671.70 points in morning trades while the Paris CAC 40 shed 1.2 per cent at 6,007.58.

London’s FTSE 100 was closed for a holiday for the funeral of queen Elizabeth II. AFP