Banking index drags European stocks deeper in the red

After a jittery start on the European indices, Brexit-led sell-off witnessed last Friday picked-pace today, as the region’s equities dived deeper in the red on the back of a slump in the banking and insurance sector stocks.

The European banks index falls 5.7% and nears 4-year lows, while the European insurance index plunges 4%, lowest since December 2013. The resumption of the sell-off is largely in response to growing concerns over the UK’s future after the Brexit decision. Moreover, the UK 10-year Gilt yields fell below 1% for the first time to hit record low at 0.995%, which also indicates increasing demand for the safe-havens such as the UK Gilts as against equities.

Germany's DAX 30 index drops -0.74% to 9,492, while the UK's FTSE 100 index falls 0.78% to 6,090. Among the other indices, the French CAC 40 index loses 0.83% to 4,086, while the pan-European Euro Stoxx 50 index declines -033% to 2,770 points..

All eyes will now remain on PM David Cameron address to the Parliament on the fallout from the EU vote at 1330GMT. While ECB President is also likely to make opening remarks at the ECB Forum, in Sintra, will also hog the limelight.