European shares were set to fall for a fourth straight day on Wednesday, taking their cue from falls in US and Asian shares overnight, as the prospect of a tightening in US monetary conditions unnerved investors at a time of heightened geopolitical uncertainty.

At 0629 GMT, futures for the Euro STOXX 50, Britain’s FTSE 100, Germany’s DAX and France’s CAC were down between 0.1 per cent and 0.4 per cent.

Asian and US shares fell overnight as markets wagered the Federal Reserve would raise interest rates earlier than expected, sending US bond yields higher and keeping the dollar well bid near 14-month highs against a basket of major currencies.

Sanctions against Russia

EU countries will discuss on Wednesday whether to implement new sanctions against Russia over its role in the Ukrainian crisis. The sanctions would include restrictions on financing for Russian state-owned oil companies and banks, an expanded list of people whose assets in the EU will be frozen, and new restrictions on the sale of goods that can be used for both military and civilian purposes.

Apple suppliers such as ARM Holding will be in focus after the US firm unveiled a watch, two larger iPhones and a mobile payments service on Tuesday.

After an early surge, Apple shares closed lower. Shares in Apple's Japanese suppliers initially fell in Tokyo before turning higher, along with the rest of the market, after the yen plumbed its weakest levels for six years against the dollar.

Euro STOXX 50

The Euro STOXX 50 has been pulling back since hitting a two-month high on Thursday, when the European Central Bank cut its interest rates and President Mario Draghi unveiled new stimulus measures.

“The US and Asia are not contributing to a positive momentum and the initial Draghi reaction is wearing off,’’ Mike Reuter, a broker at Tradition, said.

“I think we'll be weakish at the open and with more EU sanctions looming later today we might as well remain there.’’

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