European shares are lower Tuesday, led down by bank stocks following anti-EU comments from a prominent Italian lawmaker. Brexit worries are also weighing on investor sentiment, as European car makers warn that a disorderly Brexit could result in higher costs.
By 1225 BST, the EUROSTOXX 600 was 0.65% lower, while the EUROSTOXX 50 lost 0.89%. Regional bourses were also negative. The German DAX fell 0.77%, the French CAC was 0.79% in the red, the Spanish IBEX was down by 0.91% and the Italian MIB was off 0.46%.
Bank stocks lead indices lower
Italian economist, Claudio Borghi who chairs the country’s budget committee, said in an interview Tuesday, that Italy’s economy would be in better shape if it had its own currency.
While Deputy Prime Minister Luigi Di Maio quickly said that Italy didn’t want leave either the euro zone currency bloc, or the broader EU, the European stock markets were already on their way down.
After a tough period last week, Italian bank stocks once again led the sector lower:
- UniCredit shares fell 1.30% to €12.50.
- UBI Banca shares lost 1.61% to hit €3.25.
- Intesa Sanpaolo shares dropped 0.87% to €2.10.
- Banco BPM shares slid 1.19% to trade at €1.98.
Rising Italian bond yields added to the lack of enthusiasm for Italian and other European bank stocks.
Other stock movers
While Italian and other European bank stocks were among the big movers across European indexes Tuesday, there were some other stocks of interest.
Royal Mail shares slumped over 6% after it warned on profits, due to “challenging” trading conditions. The privatised letter carrier said that UK productivity levels were also lower than expected.
Bucking the negative trend, meanwhile, were Ubisoft shares, which rose amid news it’s newest video game, Assassin’s Creed Odyssey, would be used in a Google Project Stream test.
Ubisoft shares rose 2.67% to €99.20.