Risk-aversion grips Europe, DAX drops over 1%

The German and UK yields extend sell-off amid mounting uncertainty over Brexit, which triggered a fresh risk-aversion wave across the financial markets and crush risk appetite, sending stocks on the European bourses sharply lower.

Moreover, a correction in the oil prices, having hit fresh multi-month highs, also weighs on the exports stocks on the regional indices. Meanwhile, markets completely ignored upbeat trade data from the British economy, which showed that the visible trade deficit in April shrank more-than expected to GBP10.526 billion, narrowing from GBP11.204 billion in March. Markets had predicted a deficit of GBP11.100bn.

Meanwhile, Germany's DAX 30 index drops -1.15% to 10, 100 points after the German utility E.ON’s shares plunged 6.7% on spin-off news, while the UK’s FTSE drops -0.83% to 6,248. Among the other indices, the French CAC 40 index declines -0.88% to 4,410 levels, while the pan-European Euro Stoxx 50 index slides -0.78% to 2,993 points.