European markets close 1.2% lower with the Fed in the spotlight; SocGen down 12%

European stock markets closed sharply lower at the start of the trading week, as investors look ahead to a flurry of central bank decisions.

The pan-European Stoxx 600 index fell 1.18%, with all sectors in negative territory. Health care and travel and banks led losses, both falling roughly 1.8%.

The U.S. Federal Reserve’s decision will be announced on Wednesday. While investors are widely anticipating that the central bank will hold interest rates steady, they’ll be keeping a close eye to get a better sense of the central bank’s stance on inflation. 

Elsewhere this week, Australia’s central bank will release its minutes for its Sept. 5 policy meeting on Tuesday, the Swiss National Bank will make its latest rate decision Thursday, and on Friday, the Bank of Japan will conclude its monetary policy meeting.

Elsewhere, the People’s Bank of China is also expected to release its loan prime rate decisions on Friday.

In Europe last week, the European Central Bank increased interest rates by 25 basis points, a 10th consecutive hike taking its main rate to a record high of 4%.