By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets dropped for a
fourth straight day on Wednesday as uncertainty ahead of the
Scottish independence vote next week and concerns about a
sooner-than-expected U.S. interest-rate hike kept investors on
edge.
Fears that the U.S. Federal Reserve might increase interest
rates sooner than expected resurfaced after bond yields rose to a
six-week high.
Meanwhile, investors were worried about the outcome of the
referendum in Scotland on Sept. 18, with the pro-independence camp
making headway in the polls. Several British parliament members
have called on the Queen to intervene to help keep the U.K.
together, but the monarch in the Times on Wednesday warned
politicians not to drag her into the battle.
Market reaction: The Stoxx Europe 600 index fell 0.1% to end at
344.70, the lowest close in a week.
The U.K.'s FTSE 100 index hovered around a six-week low for most
of the session, but managed to eke out a tiny gain to close at
6,830.11. The pound (GBPUSD), which had fallen to a 10-month low
against the dollar, recovered slightly on Wednesday to trade at
$1.6133, up from $1.6116 late Tuesday in New York.
Elsewhere, France's CAC 40 index closed marginally lower at
4,450.79 and Germany's DAX 30 index gave up 0.1% to 9,700.17.
Major stocks on the move: Swatch Group shaved off 1.8% after
Apple (AAPL) launched its long-awaited Apple Watch, which is seen
as threat to the Swiss watch company.
Banco Santander SA (SAN) dropped 0.7% after the banking giant
said Chairman Emilio Botín died overnight.
Data: Greece remained mired in deflation in August, with
consumer prices dropping 0.3% year-over-year. The country's
consumer-price index first turned negative in March 2013, adding to
Greece's economic woes. The Greek economy is now in its seventh
calendar year of a recession.
In France, data showed growth of industrial production slowed
sharply in July, although not as sharp as expected.
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