Stocks in Europe fell on Monday, heading for their worst monthly losses in four years amid persistent investor concerns about slowing growth in China and the prospect of higher U.S. interest rates.

Falling share prices in Europe and Asia put pressure on the dollar, though weekend comments from U.S. Federal Reserve policymakers leaving the door open to a rate rise as soon as next month kept it well above last week's seven-month lows.

U.S. stocks were expected to open lower, stock index futures showed.

Oil prices fell again both on the Fed rates outlook and as investors took profits on last week's 10 percent rise.

Just last week, after a sharp fall in Chinese shares sent global stocks tumbling, a rise in U.S. rates for the first time since 2006 next month had seemed off the table.

However, senior Fed official Stanley Fischer said in a speech at the annual Jackson Hole symposium that U.S. inflation was likely to rebound, allowing rates to rise gradually.

The pan-European FTSEurofirst 300 stocks index fell 0.2 percent on Monday and, even though it has recouped all of last week's losses, was on track for its worst monthly performance since August 2011. Germany's DAX was down 0.6 percent and France's CAC 40 down 0.8 percent, both also heading for their biggest monthly loss in four years.

FED UNCERTAINTY

"The market turmoil will continue in the near future. China is the catalyst, but the real reason for the sell-off is the nervousness about the first U.S. rate hike," KBC senior economist, Koen De Leus, said.

Markets in Britain were closed for a holiday.

Asian shares closed lower. MSCI's main index of Asia-Pacific shares excluding Japan was down 0.5 percent and headed for its biggest monthly losses in three years. Tokyo's Nikkei 225 index closed 1.3 percent lower, hit by weak Japanese industrial output data.

Chinese shares had another volatile session. The CSI300 index ended up 0.7 percent, after falling 4 percent at one point. The index was still down 11.8 percent for August. The Shanghai Composite lost 0.8 percent on the day and 12.5 percent for the month.

The dollar lost ground against both the euro and the yen as investors trimmed bets against low-yielding currencies used to invest in higher-yielding assets in so-called carry trades.

"Stocks markets are in focus and absence of risk appetite is acting as a headwind to the dollar," said Niels Christensen, FX strategist at Nordea. "Having said that, with a September rate hike back in focus, I am biased towards more downside in the euro against the dollar."

The dollar index, which measures it against a basket of currencies, was down 0.1 percent on the day and 1.4 percent for August. The euro was up 0.3 percent at $1.1206 and the yen up 0.4 percent at 121.34 to the dollar.

The uncertainty about when the Fed might raise rates kept yields on German government bonds, the euro zone benchmark, close to last week's highs. Ten-year yields were marginally higher at 0.74 percent.

Brent crude fell on worries over China and a global supply glut and as investors took profits after oil's biggest two-day rally for six years last week. Brent was down $1.07 a barrel at $48.98 and, despite last week's gains, heading for its fourth consecutive monthly decline.

Gold struggled over the Fed outlook, trading around $1,131.80 an ounce.

"What is really significant is the upcoming U.S. nonfarm payroll data (on Friday)," Naeem Aslam, chief market analyst at Ava Trade, said. "If we see the average hourly income and labor market strengthening further, this will trigger a sell-off for gold."