European shares fell to their lowest level in nearly a week on Tuesday on growing concerns about rising inflation, rising coronavirus infections in China and fallout from the prolonged war in China. Ukraine.
The pan-European STOXX 600 index was down 1.1% by 0713 GMT, mirroring the weakness in Asian equities, with banks among the hardest hit.
Major German banks Deutsche Bank and Commerzbank plunged almost 8% after an undisclosed investor sold stakes of more than 5%, a stockbroker said.
China-exposed luxury stocks such as LVMH, Kering and Hermes fell 1-2% as China grapples with its worst COVID-19 outbreak in two years.
Risk appetite was further dampened as US yields continued to rise ahead of inflation data, which is estimated to show the biggest rise in consumer prices in four decades.
Among individual stocks, Italian defense group Leonardo rose 3.1% as Deutsche Bank upgraded its recommendation to “buy” on expectations of higher defense spending in the company’s main markets.