CAC 40 Retreats As Investors Look Ahead To Fed Meeting

French stocks were sharply lower on Monday, with worries about slowing global growth, concerns over a potential spillover of the debt crisis at China Evergrande Group and the prospect of tighter monetary policy due to Fed tapering keeping investors nervous.

Traders braced for the U.S. Federal Reserve's policy meeting on Tuesday and Wednesday, where the central bank is expected to lay the groundwork for a tapering.

Central banks in the EU, Japan, the UK, Switzerland, Sweden, Norway, Indonesia, the Philippines, Taiwan, Brazil, South Africa, Turkey and Hungary all have meetings this week. Norway's Norges Bank is expected to be the first in the G10 to raise interest rates.

The benchmark CAC 40 was down 135 points, or 2.1 percent, to 6,434 after declining 0.8 percent on Friday.

Alstom shares were down 3.3 percent as a diplomatic spat between France and Australia over a cancelled submarine deal rages.

Luxury stocks extended last week's losses, with LVMH, Kering and Hermes all falling around 2 percent.

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