Brussels, European stock indices closed lower at the end of trading on Tuesday, due to a decline in bank shares across the continent, with investors concerned about political uncertainty in France, while they await the Federal Reserve (US central bank) meeting tomorrow, Wednesday, regarding monetary policy.
The European Stoxx 600 index fell 0.9 percent at the close, recording its largest drop in one day in two weeks.
The Italian Milan Stock Exchange index fell 1.9 percent, and the Spanish IBEX index fell 1.6 percent, due to the impact of bank stocks.
Bank stocks led the selling, falling 2.2 percent at the close, continuing losses since Monday.
The French CAC 40 index also fell by 1.33 percent, continuing losses from the previous session, when President Emmanuel Macron called for early legislative elections after the heavy defeat of his party and its allies in the European Parliament elections against the far-right National Rally party.
Yields on ten-year French bonds reached 3.2437 percent in the latest
trading, touching their highest level in seven months earlier in the session.
The Basic Resources Index, which includes shares of major mining companies in Europe, lost about 2 percent, with most metal prices under pressure due to the rise in the dollar and concerns about demand in China, the largest consumer of metals.
Among non-financial sector stocks, Naturgy shares fell by more than 14 percent, Maersk Shipping shares fell seven percent, and Hapag-Lloyd Shipping shares also fell nine percent.
The focus is now on the US Federal Reserve’s monetary policy meeting, which will help traders deduce the date and scope of interest rate cuts in the world’s largest economy.
Source: Qatar News Agency