EUROPE MARKETS: European Stocks Slide For Fourth Straight Day

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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