European stocks opened sharply lower on Monday as investors look ahead to crucial central bank decisions from the US and Japan this week.

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The pan-European STOXX 600 was down 0.95 percent.

Global markets will be dominated by two crucial central bank meetings and monetary policy decisions this week. On Tuesday, the US Federal Open Market Committee begins a two-day meeting although expectations for a June rate hike have been pared following a lower-than-expected May nonfarm payroll number in recent weeks which cast doubts over the health of the US economy.

Meanwhile in Asia, the Bank of Japan (BOJ) is also scheduled to hold a policy meeting on June 15 with analysts saying that that bank could surprise markets with additional easing this week.

Asian stocks were trading sharply lower Monday morning, ahead of the central bank meetings. Increasing nervousness over whether the U.K. would remain in the European Union (EU) when a referendum on EU membership takes place on June 23 is also rattling markets. A new poll published on Friday showed that the majority of Brits favor leaving the EU.

Oil markets also failed to give stocks a boost on Monday with prices falling in early trade, pulled down by rising economic concerns in Asia, Reuters reported, and a strengthening in the US dollar, which makes dollar-denominated fuel imports more expensive for many countries.

There are no major earnings on Monday.