German stocks plunge more than 2.0% in early afternoon

German stocks extended their losses in early afternoon trade on Monday, with the blue-chip DAX 30 falling by more than two percent, weighed down by banking stocks.

The DAX, which had already sustained its heaviest losses since 2008 on Friday in reaction to the British vote to quit the European Union, was showing a loss of 2.0 percent at 9,366.47 points at 1055 GMT.

And the mid-cap MDAX index was down 2.6 percent at 19,314.92 points.

Elsewhere in the eurozone, the French CAC-40 was also sharply lower, shedding 1.9 percent to 4,029.93 points.

Initially at the start of trade, stock prices in Frankfurt had appeared to have stabilised but began a downward slide as the session progressed.

Shares in Germany's biggest lender, Deutsche Bank, were the biggest losers, tumbling 8.9 percent to 12.18 euros.

Commerzbank shares shed 5.2 percent to 5.88 euros.

Shares in the airline Lufthansa also nosedived, spiralling 6.4 percent lower to 10.26 euros.

By contrast, shares in the real estate group Vonovia jumped by 3.1 percent to 32.47 euros.