European markets fall sharply as new sanctions are imposed on Russia; Stoxx 600 down 1.5%

LONDON — European stocks were sharply lower on Monday as global markets track developments in the Russia-Ukraine crisis.

The pan-European Stoxx 600 dropped 1.7% in early trade, with banks plunging 5.7% to lead losses on the back of fresh sanctions as almost all sectors and major bourses slid into negative territory. Utilities bucked the trend to add 1%.

The Russian advance into Ukraine has continued throughout the weekend. Russian military vehicles entered Ukraine’s second-largest city Kharkiv, with reports of fighting taking place and residents being warned to stay in shelters.

More sanctions have been imposed on Russia for its invasion of Ukraine, with the United States, Europe and Canada agreeing Saturday to remove key Russian banks from the interbank messaging system, SWIFT. The U.K. and EU have also closed their airspace to Russian aircraft.

— CNBC.com staff contributed to this market report.