(RTTNews) - European stocks fell on Monday to extend losses from the previous session, as traders priced in a 75-basis point Fed rate hike in September, taking the rate to a range of 3.75- 4 percent by the end of the year.
Much might depend on what the August payrolls figures show this Friday., with analysts looking for a moderate rise of 285,000 jobs following July's blockbuster 528,000 gain.
Bond yields surged across Europe after a top ECB official said more tightening is needed even if Europe's economy tips into recession.
Energy security fears also weighed as Russia's Gazprom starts maintenance on Nord Stream on Wednesday for three days.
The pan European Stoxx 600 was down 1.1 percent at 421.26 after losing 1.7 percent on Friday.
The German DAX fell 1.6 percent and France's CAC 40 index tumbled 1.7 percent, while U.K. markets were closed for a bank holiday.
Tech stocks led losses, with STMicroelectronics and Infineon Technologies plunging 2-4 percent.
French drug maker Valneva advanced 1.8 percent after reporting positive late-stage trial results for its COVID-19 shot.
