European shares on Tuesday fell to their lowest in nearly a week on growing worries about rising inflation, a surge in coronavirus infections in China and the fallout of the prolonged war in Ukraine.

The pan-European STOXX 600 index fell 1.1% by 0713 GMT, echoing weakness in Asian shares, with banks among the worst hit.

Germany’s top lenders Deutsche Bank and Commerzbank slumped nearly 8% after an undisclosed investor sold stakes of more than 5%, a bookrunner said.

China-exposed luxury stocks such as LVMH, Kering and Hermes dropped in the range of 1% and 2% as China faced its worst COVID-19 outbreak in two years.

European shares slip on tech selloff, French election jitters

Risk appetite was further dented as U.S. yields continued to surge ahead of inflation data that is expected to show consumer prices gained the most in four decades.

Among individual stocks, Italian defence group Leonardo rose 3.1% as Deutsche Bank upgraded the stock to “buy” on expectations of higher defence spending in the company’s main markets.