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. 

Elsewhere in the eurozone, the French CAC-40 was also sharply lower, shedding 1.87 percent to 4,029.93 points.