European stocks sell-off extends as Brexit concerns mount

The European stocks tracked their global peers lower and dived deeper into the red on Tuesday, extending sell-off from the previous session, as renewed Brexit fears hit the markets after the latest Brexit polls showed that the UK may eventually exit EU’s membership.

The risk-aversion wave spread like a wild fire across the financial markets, with the VIX rising sharply higher, while the German and UK bond yields crashed to new record lows. Germany's 10-year bond yield extends fall to minus 0.028%, down 5 basis points on day, while UK 10y Gilt yield hits new low of 1.15%, likely to test 1.10% mark.

Markets ignored economic releases from the Eurozone as well as from the UK docket, with the Eurozone industrial production bettering expectations. While the UK CPI stagnated in May and fell short of expectations. Meanwhile, focus shifts towards the 2-day Fed monetary policy meeting which commences later today.

Germany's DAX 30 index drops -1.15% to 9,550 points, while the UK’s FTSE slumps -1.31% to 5,966. Among the other indices, the French CAC 40 index declines -1.40% to 4,167 levels, while the pan-European Euro Stoxx 50 index slides -1.53% to 2,818 points.