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 -- particularly in the U.K. -- 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 0.2% to 344.10,
setting it on track for the lowest close in a week.
The U.K.'s FTSE 100 index hovered around a six-week low, down
0.2% to 6,816.75. The pound (GBPUSD), which had fallen to a
10-month low against the dollar, recovered slightly on Wednesday to
trade at $1.6156, up from $1.6116 late Tuesday in New York.
Elsewhere, France's CAC 40 index lost 0.2% to 4,442.92 and
Germany's DAX 30 index gave up 0.3% to 9,679.47.
Major stocks on the move: Swatch Group shaved off 2.3% after
Apple (AAPL) launched its long-awaited Apple Watch, which is seen
as threat to the Swiss watch company.
Banco Santander SA (SAN) dropped 2% 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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