European stocks fall 2% as resources drop

European stocks extended losses around midday on Wednesday, falling 2 per cent to six-week lows in a broad retreat led by banking stocks, as well as energy and mining shares as commodity prices eased.

At 1145 GMT, the FTSEurofirst 300 index of top European shares was down 2 per cent at 1,302.26 points, around its lowest since since April 24.

Shares of energy companies – among the most resilient so far this year—were among the biggest losers on Wednesday, as US crude oil futures slid to below $124 (Dh456.32) a barrel, their lowest level in nearly three weeks on worries over Asian demand and on a stronger US dollar.

Total, BP and Royal Dutch Shell were down between 2.7 per cent and 3.3 per cent.