The risk-off worsened in Europe as banking shares extended the slide, taking the major indices at least 2.5% lower on the day. The blue chip pan-European Stoxx 50 index currently trades 3.6% lower. France’s CAC is down 3.6%. Germany’s DAX and UK’s FTSE are down 2.5% each. French banking shares are getting hammered – Societe Generale (-14%). Italy’s Unicredit and Generali are down 7% respectively. German lender Deutsche Bank is down 6.3%. The resulting risk-off in the equities pushed safe havens higher. Meanwhile, Riksbank’s rate cut surprise, coupled with risk-off pushed core bond yields to multi-month/record lows. For more information, read our latest forex news.