DAX lost 0.3%, CAC 40 shed 0.9%, S&P 500 futures dropped 0.6%, Dow industrials contract declined 0.5%, Hang Seng lost 1%, Shanghai Composite index shed 0.4%, S&P/ASX 200 gave up 0.3% and Kospi sank 1.1%

Shares opened lower in Europe after a day of declines for most Asian markets, as investors braced for another interest rate hike this week by the US Federal Reserve.

Britain was observing a day of mourning for Queen Elizabeth II. Japan’s markets were closed for a holiday.

Germany’s DAX lost 0.3% to 12,701.41 while the CAC 40 in Paris shed 0.9% to 6,023.55. S&P 500 futures were down 0.6% while the contract for the Dow industrials was 0.5% lower.

Markets have been on edge because of stubbornly high inflation and the increases in interest rates being used to fight it. The fear is that the Fed and other central banks might overshoot their policy targets, triggering a recession.

Most economists forecast that the Fed will jack up its primary lending rate another three-quarters of a point when the central bank’s leaders meet this week.

Fact is, hawkish expectations built on the hot under the hood’ US inflation print means that markets have good reason to be braced for headwinds amid prospects of higher (for longer) rates; and arguably higher for longer’ USD (dollar) as well, Vishnu Varathan of Mizuho Bank said in a commentary.

Hong Kong’s Hang Seng lost 1% to 18,565.97 while the Shanghai Composite index shed 0.4% to 3,115.60. Australia’s S&P/ASX 200 gave up 0.3% to 6,719.90. In Seoul, the Kospi sank 1.1% to 2,355.66.

Japan’s central bank meets Wednesday and Thursday amid rising pressure to counter a sharp decline in the yen’s value against the dollar. That has raised costs for businesses and consumers, who must pay more for imports of oil, gas and other necessities.

However the Bank of Japan has held firm so far in maintaining an ultralow benchmark rate of minus 0.1% in hopes of stimulating investment and spending.

On Friday, a stark warning Friday from FedEx about rapidly worsening trends in the economy gave investors more to worry about. The S&P 500 fell 0.7%, while the Nasdaq lost almost 1%. The Dow lost almost half a percent.

The S&P 500 sank 4.8% for the week, with much of the loss coming from a 4.3% rout on Tuesday following a surprisingly hot report on inflation.

All the major indexes have now posted losses four out of the past five weeks.