European stocks extend sell-off, Banks & property stocks weigh

The selling pressure around the European equities intensified in the European morning, driving the London stocks back in the red as sharp declines in the banking and property sector stocks continue to dampen the investors’ sentiment.

The UK’s FTSE wiped-out gains and returned to the negative territory as Tuesday’s news about the suspension of property funds spooked markets once again, and added to the prevailing Brexit-backed uncertainty. On Tuesday, three London asset managers were suspended trading in a property funds after the June 23 EU referendum.

Moreover, the extension of the rout in the European banking sector stocks also led to the sharp-sell-off seen so far this session. The banking stocks are suffering from the news that the Italian government has denied any plans to support the country’s banks hit by Brexit. Yesterday, there were reports doing the rounds that Italy was ready to help the banks with EUR3billion.

Germany's DAX 30 index drops -1.79% to 9,362, while the UK's FTSE 100 index trades -0.37% lower at 6,521. Among other indices, the French CAC 40 index drops -1.68% to 4,093, while the Euro Stoxx 50 index slips -1.66% to 2,765.