European shares are under selling pressure, pushed lower by significant declines in European banking stocks, and U.S. stocks are extending their downturn on Monday after showing weakness on Friday following the release of a mixed U.S. non-farm payroll jobs report.
The S&P 500 is down -27 or -1.44 percent while the Nasdaq has slid -83 or -1.88 percent.
Investors are showing little risk appetite for equities and are turning to safe assets like gold which is up 2.27 percent, the Japanese yen, and Treasuries.
The yield on the German 10 year bund has dropped to 0.25 and the yield on the 10 year U.S. Treasury has fallen to 1.80 percent after opening at 1.86 percent.
Crude oil (WTI) is down -2.43 percent to $30.14 a barrel.
European banking stocks are facing selling resistance as investors remain concerned due to negative interest rates from the ECB’s monetary policy which makes it costly for banks to hold cash overnight at the European Central Bank.
High debt levels across Europe and signs of weakening global growth are also weighing on European banking stocks.
Due to the Lunar New Year, several different markets in Asia were closed on Monday.