Europe: Stocks drop further at open

[LONDON] European stock markets extended losses at the start of trading on Tuesday on mounting fears that Britain could vote to leave the EU in next week's referendum.

London's FTSE 100 index dropped 0.6 per cent to 6,011.33 points.

In the eurozone, Frankfurt's DAX 30 index shed also 0.6 per cent to open at 9,595.17 points. The CAC 40 in Paris meanwhile gave up 1.2 per cent in value to 4,175.21.

While losses were less sharp than Monday, analysts said traders continued to shun risky investments with just over a week until Britain votes on its European Union future.

"The countdown to the Brexit referendum on 23 June is dominating the market agenda, The referendum is too close to call and is creating understandable risk aversion in the markets," said VTB Capital economist Neil MacKinnon.

Tokyo's benchmark index slumped to a two-month low point on Tuesday as growing fears over a possible Brexit hammered sentiment ahead of US and Japanese central bank meetings, traders said.

AFP