Major European indexes closed with sharp losses on Tuesday as investors digested Italy's approval a 40% windfall tax on bank profits, as well as Moody's decision to cut the credit rating of 10 small and mid-sized banks in the United States and review six big lenders.
The Euro Stoxx 50 dropped 1.13%. The Italian banking sector led the losses as Intesa Sanpaolo plummeted 8.67% and UniCredit plunged 5.92%.
Italy's FTSE MIB slumped 2.16%. BPER Banca and Banca Monte Paschi Siena nosedived more than 10%.
The DAX slid 1.10% with Deutsche Bank and Commerzbank tumbling 3.84% and 3.34%, respectively.
The CAC 40 fell 0.72% as BNP Paribas dropped 3.01%.
The FTSE 100 decreased 0.36%. The worst performer was Abrdn PLC, whose stock dived 11.67%.
The euro lost 0.47 against the dollar to sell for 1.098510 at 5:30 po, CET and the pound declined 0.44% compared to the US currency to go for 1.27274 at 5:31 pm CET.
