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Sept 20 (Reuters) - European shares sank 1% to a near two-month low on Monday, tracking Asian equities lower, as investors feared major central banks would start giving cues about tapering their pandemic-era stimulus programmes at various meetings this week.
The pan-European STOXX 600 index was down 1.4% by 0706 GMT, with energy and mining stocks leading declines on a slide in commodities prices.
The benchmark European stocks index has now fallen for three straight weeks on worries about slowing global growth and the spillover from tighter regulation of Chinese firms.
The U.S. Federal Reserve's policy meeting is in focus on Tuesday and Wednesday, where the central bank is expected to lay the groundwork for a tapering. On Thursday, the Bank of England holds its own policy meeting.
German shares slumped 1.6% as data showed a bigger-than-expected jump in producer prices last month.
In its biggest ever overhaul, the benchmark German index began trading on Monday with an increase in the number of constituents to 40 from 30.
In company news, Lufthansa slipped 0.6% after saying it expects to raise 2.14 billion euros ($2.51 billion) to pay back part of a state bailout that Germany's top airline received during the coronavirus crisis. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur)