European stocks continued the decline but at more moderate pace

European stocks continued the decline but at more moderate pace. The main pressure on the indices was Brexit concerns.

Today, Chancellor George Osborne tried to calm financial markets, saying that the government has a plan of action in emergency situations, which will help support the economy. Meanwhile, he said that should not wait for the launch of new financial measures until the new prime minister will be elected, that is, until the autumn. "Undoubtedly, measures must be taken to combat the influence of Brexit on public finances, but it is wise to wait until we have a new prime minister,". Even before the referendum Osborne warned that the country is in need of an emergency budget and the risk of a total loss of confidence in the state finances.

It is worth emphasizing that today the yield on 10-year UK bonds dropped below 1% for the first time.

The composite index of the largest companies in the region Stoxx Europe 600 was down 2.4 percent. The drop among the 19 industry groups was mainly due to large-scale decline of UK bank shares.

Shares of Royal Bank of Scotland Group Plc fell by 15 percent, and Barclays Plc - 12 percent.

The Spanish IBEX 35 index fell 0.4 percent on the background of the election results. Early parliamentary elections have demonstrated that none of the four major Spanish parties can not gain enough votes to form a government alone. Therefore, the chairman of the winning People's Party Mariano Rajoy said he would talk with all political forces for coalition formation.

Capitalization of EasyJet Plc decreased by 18 percent after the company's warning that reducing travel demand will reduce profit the rest of the summer.

At the moment:

FTSE 100 6,059.63 -79.06 -1.29%

CAC 40 4,048.12 -58.61 -1.43%

DAX 9,404.19 -152.97 -1.60%