European stocks extend losses, Stoxx 50 drops 3.6%

By FXStreet The risk-off worsened in Europe as banking shares extended the slide, taking the major indices at least 2.5% lower on the day.

The blue chip pan-European Stoxx 50 index currently trades 3.6% lower. France’s CAC is down 3.6%. Germany’s DAX and UK’s FTSE are down 2.5% each.

French banking shares are getting hammered – Societe Generale (-14%). Italy’s Unicredit and Generali are down 7% respectively. German lender Deutsche Bank is down 6.3%.

The resulting risk-off in the equities pushed safe havens higher. Meanwhile, Riksbank’s rate cut surprise, coupled with risk-off pushed core bond yields to multi-month/record lows.
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Source:: FX Street