European stocks slumped on Monday in response to a capital call from one of the Continent's largest lenders and resurgent political risks.

The banking sector was perhaps the biggest victim on Monday with the added weight of Deutsche Bank's (DB) - Get Deutsche Bank AG Report rights issue proving too much to bare for the sector.

This is while the withdrawal of candidate, Alain Juppe, served as a reminder of the unpredictability of global politics at present and sent a renewed sense of unease across markets.

The DAX dropped 0.60% in Frankfurt to close at 11,958, making it Europe's biggest faller among major indices. The FTSE 100 slid by 0.33% in London to close at 7,350 nd the CAC 40 fell 0.46% in Paris to close at 4,972.

Deutsche Bank was the biggest faller among large European stocks after it announced a bumper €8 billion ($8.8 billion) rights issue and a new set of financial targets on Monday morning. The shares were down more than 8% by the close.

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In a sign of which European bank might be next to see its buffer called, investors shunned Credit Suisse (CS) - Get Credit Suisse Group AG Sponsored ADR Report stock throughout the session, pushing it to a 4.2% loss.

This was disproportionate to the average 0.8% loss for the remainder of European lenders when DB is taken out of the equation.

Credit Suisse had a common equity tier 1 ratio of 11.6% at the end of the fourth quarter, which is lower than the 11.9% ratio reported by Deutsche for the same period. Meanwhile

In London, the biggest fallers were found in the mining sector, which has been particularly volatile of late. Glencore (GLNCF) and Rio Tinto (RIO) - Get Rio Tinto plc Sponsored ADR Report were among the big fallers, both with losses of more than 2%.

On a brighter note, losses for the British blue chip index were constrained by gains at Standard Life (SLFPF) after it announced a tie up with Aberdeen Asset Management (ABDNF) that will create the U.K.'s largest fund management group. Shares of both companies gained 6.2% and 4.4% respectively.

In France, Societe Generale (SCGLY) and ArcelorMittal (MT) - Get ArcelorMittal SA ADR Report were among the biggest fallers. Soc Gen was a victim of the weak banking sector while ArcelorMittal fell after submitting a final bid for Europe's largest steel plant, Ilva, in Italy. The shares were down around 2% each at the close.