European Markets Drop On "Brexit" Concerns

(RTTNews) - The European markets ended the first session of the new trading week in the red and sank to their lowest level in two months. The weak performance of the Asian markets had investors in a foul mood and continued concerns over a potential U.K. exit of the European Union also contributed to the weak performance.

An ORB poll for the Independent newspaper published late Friday showed that the "Leave" camp has a 10-point lead over "Remain" less than two weeks before the country votes in a referendum.

Financial stocks were among the weakest performing stocks, as bond yields continue to slip to new record lows. The continued pull back in crude oil prices also weighed on energy stocks. However, gold stocks were among the best performing stocks, as investors flock to safe havens.

Investors will be watching for the release of the Federal Reserve's monetary policy announcement after the European close on Wednesday. The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement. The Bank of Japan will also hold its policy meeting this week.

The Euro Stoxx 50 index of eurozone blue chip stocks decreased 1.98 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.64 percent.

The DAX of Germany dropped 1.80 percent and the CAC 40 of France fell 1.85 percent. The FTSE 100 of the U.K. declined 1.16 percent and the SMI of Switzerland finished lower by 1.77 percent.

In Frankfurt, Commerzbank declined 3.08 percent and Deutsche Bank weakened by 3.14 percent.

ThyssenKrupp dropped 3.23 percent and Salzgitter surrendered 3.19 percent.

In Paris, Credit Agricole decreased 3.34 percent and Societe Generale lost 3.32 percent. BNP Paribas also finished lower by 2.90 percent.

Technip declined 3.03 percent and Total fell 1.36 percent.

In London, G4S sank 5.02 percent after the security company confirmed that Omar Mateen, the gunman behind the Orlando mass shooting, was one of its employees.

Inmarsat climbed 1.00 percent, after it entered into a strategic partnership with SpeedCast International.

Lloyds Banking Group dropped 4.21 percent and Barclays fell 2.51 percent. Standard Chartered weakened by 2.91 percent.

Randgold Resources increased 0.68 percent and Fresnillo rose 1.57 percent. Industrial output in China was up 6.0 percent on year in May, the National Bureau of Statistics said on Monday, which was in line with expectations and unchanged from the previous month.

The bureau also said that retail sales were up 10.0 percent on year, shy of forecasts for 10.1 percent, which would have been unchanged.